HomeMy WebLinkAbout2016-01-25 AgendaVi11 e of edorton rove
VILLAGE BOARD OF TRUSTEES
REGULAR MEETING NOTICE/AGENDA
TO BE HELD AT THE RICHARD T. FLICKINGER MUNICIPAL CENTER
SCANLON CONFERENCE ROOM
JANUARY 25, 2016
6:00 pm
(The hour between 6:00 and 7:00 pm is set aside for Executive Session
per 1-5-7A of the Village of Morton Grove Municipal Code.
If the Agenda does not include an Executive Session, the meeting will begin at 7:00 pm.)
1. Call to Order
2. Pledge of Allegiance
3. Executive Session
THE BALANCE OF THE MEETING SHALL COMMENCE AT 7:00 PM
IN THE COUNCIL CHAMBERS
OF THE RICHARD T. FLICKINGER MUNICIPAL CENTER
4. Reconvene Meeting
5. Pledge of Allegiance
6. Roll Call
7. Approval of Minutes — Regular Meeting — January 11, 2016
8. Special Reports
9. Public Hearings
10. Residents' Comments (agenda items only)
Richard T. Flickinger Municipal Center
6101 Capulina Avenue Morton Grove, Illinois 60053-2985
Tel: (847) 965-4100 Fax: (847) 965-4162
Receded Payr.-
11. President's Report —Administration, Northwest Municipal Conference, Council of Mayors, Strategic
Plan, Comprehensive Plan
a. Appointment of New Community Relations Member/Chairperson Arcelia Pimentel
b. Commission/Board/Committee appointments/reappointments are requested as follows:
Firefighters' Pension Board Hanna Sullivan
12. Clerk's Report — Community Relations Commission
13. Staff Reports
a. Village Administrator
1) Miscellaneous Reports and Updates
b. Corporation Counsel
14. Reports by Trustees
a. Trustee Grear — Police Department, Community and Economic Development Department, Fire
and Police Commission, Police Facility Committee, NIPSTA, Lehigh/Ferris TIF, Prairie View
TIF (Trustee Witko)
b. Trustee Minx — Natural Resource Commission, Plan Commission/Zoning Board of Appeals,
Building Department (Trustee Pietron)
c. Trustee Pietron — Public Works Department, Condominium Association, Economic
Development Commission, Dempster Street Corridor Plan (Trustee Minx)
1) Resolution 16-05 (Introduced January 25, 2016)
Authorizing the Execution of a Task Order with Ciorba Group, Inc. for Design
Engineering Services for Sites I & J Development Drainage Engineering Project
2) Resolution 16-06 (Introduced January 25, 2016)
Accepting the Public Improvements Constructed as Part of the Lexington Station
Development
d. Trustee Ramos — Legal, Finance Department, Finance Advisory Commission, Traffic Safety
Commission, Waukegan Road TIF, Capital Projects (Trustee Thill)
1) Ordinance 16-02 (Introduced January 25, 2016) (Requesting Waive of Second Reading)
Amending and Restating the Village of Morton Grove Retirement Plan Effective January
1, 2016
2) Resolution 16-07 (Introduced January 25, 2016)
Authorizing the Execution of a Contract with Lauterbach and Amen, LLP for Actuarial
Services for the Village of Morton Grove Police, Fire, and Municipal Retirement Funds
14. Reports by Trustees (continued)
e. Trustee Thill — Fire Department, Emergency Management Agency, RED Center, Environmental
Health, Solid Waste Agency of Northern Cook County, Appearance Commission (Trustee
Ramos)
f. Trustee Witko — IT Communications, Strategic Plan Committee, Family and Senior Services
Department, Chamber of Commerce, Advisory Commission on Aging (Trustee Grear)
1) Resolution 16-08 (Introduced January 25, 2016)
Authorizing a Contractual Agreement with CDW-G to Provide for the Renewal of a
Microsoft Enterprise Agreement for Microsoft Software Licensing for Operating and
Productivity Software for All Village Desktop Computers
15. Other Business
16. Presentation of Warrants - $853,692.28
17. Residents' Comments
18. Executive Session — Personnel Matters, Labor Negotiations, Pending Litigation, and Real Estate
19. Adjournment - To ensure full accessibility and equal participation for all interested citizens, individuals with disabilities
who plan to attend and who require certain accommodations in order to observe and/or participate in this meeting, or who
have questions regarding the accessibility of these facilities, are requested to contact Susan or Marlene (847/470-5220)
promptly to allow the Village to make reasonable accommodations.
MINUTES OF A REGULAR MEETING OF THE PRESIDENT
AND THE BOARD OF TRUSTEES OF THE VILLAGE OF MORTON GROVE
COOK COUNTY, ILLINOIS, HELD AT THE
RICHARD T. FLICKINGER MUNICIPAL CENTER
JANUARY 11, 2016
CALL TO ORDER
I & Village President Dan DiMaria called the meeting to order at 7:00 p.m. in the Council
II. Chambers of Village Hall. A Police Department Color Guard, led by Commander Paul Yaras,
presented and posted colors. Mayor DiMaria then led the Board and assemblage in the
Pledge of Allegiance.
lll. Village Clerk Connie Travis called the roll. Present were: Trustees Bill Grear, Rita Minx,
John Pietron, Ed Ramos, John Thill, and Janine Witko.
IV. APPROVAL OF MINUTES
a. Regarding the Minutes of the December 14, 2015 Regular Board Meeting, Trustee Minx
moved to approve the Minutes as presented, seconded by Trustee Witko. Motion passed
unanimously via voice vote.
V. SPECIAL REPORTS
1. Swearing In Ceremony for New Police Office Daniel Dahm
a. Mayor DiMaria said that this is a special evening, as one of Morton Grove's own, Daniel Dahm,
is sworn in. He said the Dahm family has a long tradition of serving Morton Grove, adding that
he respects the Dahm family and is very proud of Daniel.
b. Fire and Police Commission Chairman Mike Simkins agreed, saying this is especially gratifying
to him, because he saw Daniel grow up. The fact that this is the third generation of the Dahm
family to serve Morton Grove is near and dear to his heart. Chairman Simkins invited trustee
liaison Bill Grear, Chief Mike Simo, Mayor DiMaria, and Daniel and his family to the podium.
c.
Mr. Simkins gave a brief bio: Daniel started his employment with the Village as of last Monday,
and also began his training at the Suburban Law Enforcement Police Academy that day. Daniel
was born and raised in Morton Grove, graduated from Niles West High School in 2007, and
attended Carthage College in Kenosha, where he received his Bachelor's Degree in Criminal
Justice. As mentioned, Dan's family has a long history with Morton Grove, and Dan is happy to
carry on the tradition. He has been working as a CSO for the Morton Grove Police Department
and is well prepared to serve his Village as a police officer.
x" . A" `..,.,4 > x.. - ?: 7 VhnUfes.of.Janua , 11 2016 Board Meeting
V.
SPECIAL REPORTS (continued)
Mr. Simkins swore Dan in to the applause and congratulations of the Board and the
assemblage.
2. Presen ation of the Government Finance Officers Association Award for the Certificate of
Achievement in Financial Reporting
a. Village Administrator Czerwinski said he had received notice that the Village received this
award for the 2014 Budget year. The certificate reflects that Morton Grove has the appropriate
processes and reporting methods, and went through the appropriate steps to finalizing its
budget. This Award reflects all prior years' of the Village receiving it and is displayed in the
Finance Department. Mr. Czerwinski thanked the staff of the Finance Department for all their
hard work.
VI.
VII.
VIII.
PUBLIC HEARINGS
NONE
RESIDENTS' COMMENTS (Agenda Items Only)
NONE
PRESIDENT'S REPORT
1. Mayor DiMaria sought concurrence for his Administrative Appointment of Hanna Sullivan as the
Village's new Finance Director/Treasurer.
a.
Trustee Pietron moved to concur with these appointments, seconded by Trustee Minx. Motion
passed unanimously via voice vote.
Mayor DiMaria said that Ms. Sullivan comes to Morton Grove from the Winnetka Finance
Department. He said that she has a strong sense of Customer Service and felt she would be
excellent in this position.
b. Ms. Sullivan commented that she went to school at Loyola Academy and her career has been in
Government Finance. She thanked the Board and said she looked forward to this opportunity.
2. Mayor DiMaria then presented Resolution 16-01, Authorizing the Appointment of Delegates
to the Intergovernmental Personnel Benefit Cooperative (IPBC).
a.
He explained that the IPBC is instrumental in providing cost-effective health and life insurance
benefits to Village employees. As a member, the Village is required to have delegates to
represent it in IPBC matters. This resolution authorizes the Village Administrator and the
Finance Director/Treasurer as the Village's representatives.
2
;fiAinuts of..11604arya1;:2035'8oa[d;M.eetiig`.
VIII.
3.
PRESIDENT'S REPORT (continued)
Trustee Pietron moved to approve Resolution 16-01, seconded by Trustee Minx.
Motion passed: 6 ayes, 0 nays.
Tr. Grear ,ate Tr. Minx at Tr. Pietron syt
Tr. Ramos aye Tr. ThIII a e Tr. Witko ays
Mayor DiMaria also presented Resolution 16-02, Authorizing the Appointment of a Delegate
and Alternate Delegate to the Intergovernmental Risk Management Agency (IRMA).
a. He explained that this resolution is required by IRMA and authorizes the Village Administrator
as the Risk Manager and the Finance Director as the Alternate.
4.
a.
Trustee Grear moved to approve Resolution 16-02, seconded by Trustee Witko.
Motion passed: 6 ayes, 0 nays.
Tr. Grear aye Tr. Minx
Tr. Ramos sys Tr. Thil!
sys
Tr. Pietron
Tr. Witko
syt
Next, Mayor DiMaria presented Resolution 16-03, Authorizing the Appointment of a
Delegate and Alternate Delegate to the Illinois Municipal Retirement Fund (IMRF).
He explained that this resolution is required by IMRF and authorizes the Finance Director)
Treasurer and the Village Administrator as the Village's representatives to IMRF.
Trustee Pietron moved to approve Resolution 16-03, seconded by Trustee Minx.
Motion passed: 6 ayes, 0 nays.
Tr. Grear Tr. Minx
Tr. Ramos aye Tr. Thill
sys
sys
Tr. Pietron
Tr. Witko
5. Mayor DiMaria reminded everyone that the registration period is now open for the next session
of the Police Department's Citizens Academy. The session begins on March 22 and will be held
every Tuesday evening until May 24. Applications will be accepted through February 12, 2016.
Anyone interested in applying should do so as soon as possible via the Village's website or by
contacting Officer Gina Lietz at 847-470-5200.
6. Mayoral Update: A Look Back at 2015's Accomplishments and a Review of 2016's Goals
a.
Mayor DiMaria stated that he is proud that the Village Board and staff work as a team, sharing
the goal of providing high-quality municipal services and public improvements in a fiscally
responsible manner, while developing and supporting economic activities in order to preserve
and enhance an excellent quality of life for the community. He noted that each member of the
Board brings a unique perspective to the collective work of setting Village policy, and said that,
despite differences of opinions, the Board's goal is to work together for the residents and
businesses of Morton Grove.
3
Minutes of January 11, 2016 Board (Meeting
VIII. PRESIDENT'S REPORT (continued)
6. Mayoral Update (continued)
Mayor DiMaria said that 2015 was one of the best years yet in moving Morton Grove forward.
c. He praised the Public Works Department, led by Andy DeMonte, and said that their efforts
make all of our lives better. In 2015, Public Works responded to two extreme summer storms
and 32 winter (ice and snow) storms. The Village had its first "boil order" in decades in 2015
when a large water main broke, releasing two million gallons of water into the forest preserves.
Amazingly, Public Works got the break fixed and returned Morton Grove's water system to
normal within hours. The boil order lasted 2.5 days and was a health safety precaution.
d.
e.
f.
g.
h.
Public Works also collected 1,237 tons of leaves; trimmed 1,444 parkway trees; removed 183
dead or diseased trees; planted 113 parkway trees; repaired 72 water main breaks; replaced
and repaired 569 signs and 61 sign poles; used 4,038 tons of roadway salt; used 104 tons of
cold mix patch and 587 tons of hot mix asphalt to help keep streets pot -hole free; repaired
11 alleys; and helped residents obtain over 875 free rain barrels from the Metropolitan Water
Reclamation District.
As far as Public Safety, Mayor DiMaria complimented the Police and Fire Departments, led by
Chief Michael Simo and Chief Tom Friel respectively, as they are committed to innovative
operations and forming relationships with community partners.
In 2015, the Police Department initiated a Citizens Police Academy attended by 20 residents;
hosted a Police Department open house event; participated in the first Morton Grove Police
Department National Night Out; and upgraded the video cameras in the lock-up areas. Further,
Deputy Chief Brian Fennelly successfully completed Advanced Administrative Training at the
FBI National Academy, and Officers Lietz and Tabor attended numerous events and met with
hundreds of residents and businesses as part of the department's community outreach efforts.
Morton Grove's Fire Department benefitted from a new $585,000 fire engine, successfully put
into service in July, which allowed for the replacement of a 1978 Pierce Arrow engine.
In 2015, the Fire Department responded to 3,713 calls for emergency service with an average
response time of four minutes from dispatch to arrival. This included 2,106 calls for emergency
medical services and 1,607 fire/rescue/service calls, including 37 fires. $3.8 million of property
was saved from damage in actual fire incidents. The Fire Department paramedics participated
in a program to significantly cut the time needed to get heart attack patients from their home to
the operating room, in an effort to increase survivability. The Department's thermal imaging
technology was updated so that firefighters can better detect fires and hazards in zero visibility
(even through most walls). The Fire Prevention Bureau provided fire safety and injury preven-
tion education to over 1,000 school -aged children and scores of seniors. Public safety staff
participated in 22,700 hours of technical training, including participation in coordinated "Active
Shooter" response training, simulating the extraction and transport of mass casualty gunshot
victims from public venues. The Village utilized the Mass Notification system seven times in
2015 in order to keep the community better informed as to ongoing events.
i• In terms of economic development and business services, probably the biggest news of 2015 is
the announcement that Moretti's is coming to Morton Grovel Moretti's is part of the Ala Carte
Entertainment Group, known throughout Chicagoland for top-notch successful restaurants and
4
Minutes of January 11, 2016 Board Meeting
VIII.
6. Mayoral Update (continued)
PRESIDENT'S REPORT (continued)
entertainment venues. The new Morton Grove Moretti's restaurant and catering facilities will be
over 10,000 square feet and wilt bring, not only new tax revenue, but also new jobs, new dining
options, and it will be the catalyst for additional businesses in the Village.
j. Also in 2015, the new Audi dealership at Waukegan and Golf had a great first year. Their beau-
tiful 60,000 square foot facility now brings in substantial property tax revenue to the Village and
to School District 67, in addition to substantial sales tax revenue.
k. The Board also approved in 2015 a redevelopment agreement for a new $46 million mixed-use
retail and residential development at 8700 Waukegan Road. The project is currently proceeding
through the zoning approval process, with construction anticipated to start in spring of 2016.
I. As to the 2015 accomplishments of the Administration, Mayor DiMaria said that neither he nor
the Board members micro -manage Village staff. However, the single most important decision
he made in 2015 was appointing Ralph Czerwinski as Village Administrator. Ralph's work ethic,
his passion for excellence, his focus on problem -solving, and his commitment to staff and
residents are well-known and well appreciated.
m. In 2015, the marketing and branding initiative was completed, resulting in the Village's new
tagline and logo. Efforts to improve communication with residents included live streaming of
Village Board meetings, hosting three successful neighborhood outreach events, and an
increase in the Village's Facebook page of over 42% in followers.
n. Mayor DiMaria said the Village faces big issues, challenges, and opportunities in 2016.
Springfield is a mess, and that financial crisis can greatly impact the Village. The world is
increasingly becoming more dangerous and terrorism can occur anywhere. The mayor said that
we cannot control these things, but we can and must be prepared. So, for 2016, the Village's
first goal is to maintain its excellent public services. The Village will also continue its efforts to
upgrade its infrastructure, including working with the Village of Niles to evaluate alternative
water supplies. The Village will focus its efforts to cost-effectively maintain its infrastructure with
a near- and long-term focus.
o. Another goal will be to review our organization, our operations, and our processes to reduce
expenses without impacting vital services. And in 2016, the Village will also focus on customer
service and resident communications, including improving the database for its mass communi-
cation system. The system is only as good as the information it has. Mayor DiMaria said the
administration will work with residents and businesses to obtain both correct and current email
addresses and phone numbers. In 2016, the Village will also begin integrating its new logo
throughout its communications with residents and businesses, and the final goal of 2016 is to
continue efforts to attract successful businesses to Morton Grove.
P.
Mayor DiMaria said the most frequent feedback he gets from residents is "What's going on with
the Prairie View Shopping Center?" and "We need a full service grocery store." These are his
top priorities. The Board and staff have worked and will continue to work with the owner of the
shopping center and prospective retailers to revitalize what was once the Village's most
productive commercial center. The mayor said he was optimistic and believed everyone's hard
work would ultimately pay off. This will be Morton Grove's best year yet!
5
Vlinutesof:;January 71 t20i:. Board Meeting
IX.
Clerk Travis had no report.
X.
A. Village Administrator:
CLERK'S REPORT
STAFF REPORTS
1. Village Administrator Czerwinski thanked the Police Department for providing the color guard
this evening. He also thanked the Village Board for their appointment of Hanna Sullivan as
Finance Director, adding that she will be a great asset for the Village.
2. Mr. Czerwinski said he wanted to publicly acknowledge the great job done by Fire Chief Tom
Friel, filling the void as Finance Director until the Village could hire someone. He also thanked
Ed McKee, a part-time accounting professional who helped immensely during the budget
process, and noted that "we'll keep your phone number close."
3. Mr. Czerwinski thanked Boyle Wong for updating the Village's website, noting that, in the future
both the website and the Village's Facebook page will, from time to time, offer a "Morton Grove
Spotlight" feature highlighting things that are good or things people need to know about. He
added that the Village's newsletter came out recently with a new format, and that, too, will
include a "Morton Grove Spotlight" section when appropriate. The "spotlight" idea came from
Trustee Thill.
4. Mr. Czerwinski said that the ability to "mass communicate" with residents is crucial. He said the
Village has a good system, but the Village needs the cooperation of its residents in order for the
system to work as efficiently as it should. To that end, Mr. Czerwinski said the Village will make
the sign-up process as easy as possible for residents. They only need to call Village Hall. While
they're at it, they can also sign up for the Village's e -newsletter and the Economic Development
e -newsletter. Both of these e -newsletters are ways in which the Village can very quickly deliver
important news to its residents and businesses.
5. Mr. Czerwinski announced that the Secretary of State's office is no longer mailing license plate
renewal/registration forms. He said it's very important that people check their license plate
expiration date and go online to renew the plates at least a month in advance. Mr. Czerwinski
said this is a shocking change, but one that will save the State $450,000 a month. He added
that Mayor DiMaria had brought this information to his attention.
6. On behalf of the Morton Grove Public Library, Mr. Czerwinski announced that a Senior Spelling
Bee would be held on March 16, 2016 at 10:00 a.m. at the Library. This is open to people who
are age 50 and older. Culver's is co -sponsoring this event. The winner and runner-up will
advance to a regional spelling bee. This information will be posted on the Village's website and
its Facebook page.
B. Corporation Counsel:
Corporation Counsel Liston had no report.
6
'inutos"of January 11, 2016 Board -Meeting.
XL
TRUSTEES' REPORTS
A. Trustee Grear:
1. Trustee Grear presented Resolution 16-04, Authorizing Membership for the Morton Grove
Police Department in the Northeastern Illinois Regional Crime Laboratory (NIRCL).
a.
b.
He explained that Village currently relies on the Illinois State Police Crime Laboratory in
Chicago for crime lab services. Due to the heavy usage of this lab by other law enforcement
agencies, including the Chicago Police Department, the processing times for evidence analysis
are extremely long, and the lab's ability to conduct sophisticated analyses on Morton Grove PD
evidence submissions is limited. The NIRCL is a private crime lab serving approximately 42
member law enforcement agencies. Its turnaround time and ability to conduct sophisticated
analyses is significantly faster and better, resulting in better overall service to the crime victims
and the residents of the Village. This lab is the only full service private crime laboratory in the
Chicago metro area.
Trustee Grear said this agreement will automatically renew on May 1 of each year unless the
Village adopts a resolution to terminate the membership agreement. Cost of membership is
$33,716 annually.
Trustee Grear moved to adopt Resolution 16-04, seconded by Trustee Minx.
Motion passed: 6 ayes, 0 nays.
Tr. Grear aye Tr. Minx ave
Tr. Ramos ave Tr. ThiII lyg
Tr. Pietron a e
Tr. Witko aye
2. Trustee Grear welcomed Ms. Sullivan and congratulated Daniel Dahm, who he's known for
many years.
3. Trustee Grear thanked the residents for giving him the opportunity to serve them, saying he
tries to answer everyone's questions as honestly as possible, and if he doesn't know the answer
to a question, hell say so, and try to find the right person to answer the question. He said he
feels that the relationship between the Board and the staff is like that of a family.
B. Trustee Minx:
Trustee Minx had no formal report, and agreed with Trustee Grear's assessment of the nature
of the relationship between the Village Board and staff. She said it's the main reason why
Morton Grove is a good place in which to work, raise a family, and retire!
7
Minutes of January 11, 2016 Board Meeting
Xl.
TRUSTEES' REPORTS (continued)
C. Trustee Pietron:
Trustee Pietron noted that, in the corporate world, it's the CEO of the company that sets the
tone; in terms of the Village, it's the mayor. He said Mayor DiMaria has set the tone for the
Village in terms of his honesty, progressiveness, and confidence in his staff.
D. Trustee Ramos:
Trustee Ramos congratulated Mayor DiMaria for the strong leadership he provides, and
encouraged him to "keep it upl"
E. Trustee Thill:
Trustee Thill complimented Mayor DiMaria on his "state of the Village" report, calling it exciting
and well-done.
F. Trustee Witko:
Trustee Witko had no report, but passed on a warning to residents from ComEd to be on the
alert for scam artists claiming to be ComEd representatives seeking payment. These scam
artists are trying to frighten people by telling them their service will be discontinued unless a
payment is made. They instruct the resident to wire funds or buy a prepaid credit card and call
them with the PIN from the card.
Trustee Witko said ComEd wants to protect its customers from these types of deceptive
schemes. It's not ComEd's practice to ask a customer to purchase a prepaid credit card. If
customers are ever unsure about the status of their accounts, they should always contact
ComEd for verification. People who believe they have been the target of a phone scam are
urged to contact the Illinois Attorney General's office at 1-800-386-5438.
Trustee Minx also noted that, if something appears to be too good to be true, it's probably not.
There are other types of scams out there about winning or inheriting money, where victims are
asked to first provide money before their winnings or inheritance can be released. If anyone
feels they are a victim of such a scam, they should call the Morton Grove Police Department.
XII. OTHER BUSINESS
NONE
8
Lis
{
inutes,'of .-January 11, 201.6 Board Meeting
XIII.
1.
WARRANTS
Trustee Ramos presented the Warrant Register for December 28, 2015, in the amount of
$906,308.07. He moved that the Warrants be approved as presented. Trustee Pietron
seconded the motion,
Motion passed: 6 ayes, 0 nays.
Tr. Grear aye Tr. Minx
Tr. Ramos aye Tr. ThiIl
Tr. Pietron
Tr. Witko
2. Trustee Ramos presented the Warrant Register for January 11, 2016 in the amount of
$682,700.20. He moved that the Warrants be approved as presented, seconded by Trustee
Witko.
Motion passed: 6 ayes, 0 nays.
Tr. Grear Ayg Tr. Minx
Tr. Ramos aye Tr. Thill
Tr. Pietron gig
Tr. Witko aye
XIV. ADJOURNMENT
Trustee Pietron moved to adjourn the meeting, seconded by Trustee Minx.
Motion passed: 6 ayes, 0 nays.
Tr. Grear aye Tr. Minx
Tr. Ramos aye Tr. Thill ave
The meeting adjourned at 7:48 p.m.
Tr. Pietron aye
Tr. Witko aye
s
Minutes of January 11, 2016 Board Meeting
PASSED this 25th day of January, 2016.
Trustee Grear
Trustee Minx
Trustee Pietron
Trustee Ramos
Trustee Thili
Trustee Witko
APPROVED by me this 25th day of January, 2016.
Daniel P. DiMaria, Village President
Board of Trustees, Morton Grove, Illinois
APPROVED and FILED in my office this 26th day of January, 2016.
Connie J. Travis, Village Clerk
Village of Morton Grove, Cook County, Illinois
Minutes by: Teresa Cousar
10
Legislative Summary
Resolution 16-05
AUTHORIZING THE EXECUTION OF A TASK ORDER WITH
CIORBA GROUP, INC. FOR DESIGN ENGINEERING SERVICES
FOR SITES I & J DEVELOPMENT DRAINAGE ENGINEERING PROJECT
Introduced:
Synopsis:
Purpose:
Background:
Programs, Departments
or Groups Affected
Fiscal Impact:
Source of Funds:
Workload Impact:
Administrator
Recommendation:
Special Considerations
or Requirements:
Respectfully submitted:
Prepared by:
January 25, 2016
To authorize the Village Engineer to execute a task order with Ciorba Group, Inc. for
design engineering services for Sites I & J Development Drainage Engineering Project.
To design improvements to construct a storm sewer system to serve areas identified as
Sites I & J in the Lehigh/Ferris Framework Plan adopted in November 2008.
The Lehigh/Ferris Framework Plan was adopted in 2008 to define an implementable
long-term vision for redevelopment within the Lehigh/Ferris Subarea. Sites I and J are
identified in the Lehigh/Ferris Framework Plan as property parcels bounded by the
river/railroad, Dempster Street, Narragansett Avenue, and Hennings Court.
Metropolitan Water Reclamation District (MWRD) will require a separate storm sewer
system to service new development in this area. It is consistent with the Village's
development code to have the separate storm sewer system and in the Village's best
interest to construct these regional stormwater management measures that will serve
this and other future development in this area.
Public Works, Community and Economic Development.
$32,613.40
2016 Lehigh -Ferris TIF Account 151079-571029.
The management and supervision of this contract will be performed by the Engineering
Division of Public Works and Community and Economic Development Departments as
part of their normal operations.
Approval as presented.
None
Reviewed by:
h E. Czerwins 1, illage Administrator
/ 7
Reviewed by:
Chris .mich, Village
gin er
41W #11r
J*i
Teresa Ho " . • iston, Corporation Counsel
Reviewed by:
cv Radze
rector Public Works
ommunity and Economic Development
RESOLUTION 16-05
AUTHORIZING THE EXECUTION OF A TASK ORDER WITH
CIORBA GROUP, INC. FOR DESIGN ENGINEERING SERVICES
FOR SITES 1 & J DEVELOPMENT DRAINAGE ENGINEERING PROJECT
WHEREAS, the Village of Morton Grove (Village), located in Cook County, Illinois, is a home rule
unit of government under the provisions of Article 7 of the 1970 Constitution of the State of Illinois, can
exercise any power and perform any function pertaining to its government affairs, including but not limited
to the power to tax and incur debt; and
WHEREAS, Lehigh/Ferris Framework Plan was adopted in 2008 to define an implementable
long-term vision for redevelopment within the Lehigh/Ferris Subarea; and
WHEREAS, Sites I and J are identified in the Lehigh/Ferris Framework Plan as property parcels
bounded by the river/railroad, Dempster Street, Narragansett Avenue, and Hennings Court; and
WHEREAS, a separate storm sewer system will be required by the Metropolitan Water
Reclamation District of Greater Chicago (MWRD) for new development in this area; and
WHEREAS, it is consistent with the Village's development code to have a separate storm sewer
system; and
WHEREAS, it in the Village's best interest to design and construct these regional stormwater
management measures to facilitate future development in this area; and
WHEREAS, the design engineering required for this project is beyond the expertise and capacity
of Village staff, so the Village will need to procure engineering services for this work; and
WHEREAS, Resolution 15-66, approved on October 26, 2016, authorized staff to negotiate a task
order contract with Ciorba Group, Inc. for professional engineering services; and
WHEREAS, Village staff has negotiated a scope of services from Ciorba Group, Inc. to develop up
to three design alternates of a storm sewer system to drain the areas bounded by the river/railroad, Dempster
Street, Narragansett Avenue, and Hennings Court (attached Exhibit "1 "), recommend the alternate with the
highest benefit to cost ratio, and design construction plans and specifications for the design alternate
preferred by the Village in the not -to -exceed amount of $32,613.40 and
WHEREAS, the 2016 Adopted Budget contains an allocation of $4,300,000 in the Lehigh -Ferris TIF
Fund Account 151079-571029 for potential projects within or adjacent to the Lehigh -Ferris TIF District, of
which the full amount is unobligated.
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF MORTON GROVE, COOK COUNTY, ILLINOIS AS
FOLLOWS:
SECTION 1: The Corporate Authorities do hereby incorporate the foregoing WHEREAS clauses
into this Resolution as though fully set forth therein thereby making the findings as hereinabove set forth.
SECTION 2: The Corporate Authorities hereby authorize the Village Engineer to execute a task
order for Ciorba Group, Inc. to complete design engineering for Sites I & J Development Drainage Engineering
Project in the not -to -exceed amount of $32,613.40.
SECTION 3: This Resolution shall be in full force and effect upon its passage and approval.
PASSED THIS 25th DAY OF JANUARY 2016
Trustee Grear
Trustee Minx
Trustee Pietron
Trustee Ramos
Trustee Thill
Trustee Witko
APPROVED BY ME THIS 25th DAY OF JANUARY 2016
Daniel P. DiMaria, Village President
Village of Morton Grove
Cook County, Illinois
ATTESTED and FILED in my office
This 26th DAY OF JANUARY 2016
Connie Travis, Village Clerk
Village of Morton Grove
Cook County, Illinois
EXHIBIT "1"
Attachment C
TASK ORDER
In accordance with Article 35 of the Consulting Services Contract dated 11/1/2015 ("Contract")
between the Village of Morton Grove ("VILLAGE") and Ciorba Group, Inc.
("CONSULTANT"), the CONSULTANT is authorized by the VILLLAGE to perform the
following task order as follows:
1 Contracted Services:
Sites I & J Development Drainage Engineering (See attached detailed description)
2 Time of Performance (attach schedule if appropriate):
January 27, 2016 through June 24, 2016(See attached detailed work breakdown structure)
3 CONSULTANT's Compensation:
Not to exceed $32,613.40
All other terms and conditions remain unchanged.
VILLAGE CONSULTANT
Signature Signature
Village Engineer President
Date Date
EXHIBIT "1"
SITES I & J DEVELOPMENT DRAINAGE ENGINEERING
VILLAGE OF MORTON GROVE
1/18/2016
The Village of Morton Grove has committed itself to conveying Village -owned property parcels
comprising at 6415 Dempster Street, as well as three other properties fronting Narragansett Avenue and
Ferris Avenue for the purpose of redevelopment. The Village assisted the developer in obtaining
approval from the Metropolitan Water Reclamation District to make a temporary connection to the
Village's combined sewer for the purposes of draining the development. This approval was contingent
upon the Village obtaining a Watershed Management Ordinance permit for the final design of storm
sewer discharge for the development that is tributary to the North Branch of the Chicago River. The
Village of Morton Grove is requesting a review of alternative routes for the final discharge, review of
regional detention considerations, and design of the selected route. The following tasks will be
performed as part of this task order:
• Perform a topographic survey of the associated properties bounded by Dempster Street (north),
Ferris Avenue (east), Hennings Court (south), and the Metra right of way (west). Include spot
survey of key offsite drainage structures in order to assess alternatives that include connection
to the 96" relief sewer.
• Prepare a concise technical memorandum comparing the scope, schedule, and budget of the
following 3 route alternatives:
1, Outfall to North Branch of the Chicago River via easement in Metra right of way behind
the triangle property at the corner of Lincoln Avenue and Dempster Street.
2. Outfall to 96" relief sewer on Lincoln Avenue, south of the Metra right of way.
3. Outfall to the 96" relief sewer at the intersection of Narragansett Avenue and Capulina
Avenue.
• Include in the technical memorandum a discussion of regional detention / stormwater
management plan for future developments bounded by Dempster Street, Ferris Avenue,
Hennings Court, and Naragansett Avenue.
• Preparation of Design Documents and Cost Estimate at Concept, Preliminary, Pre -Final, and Final
Submittal detail.
• Permitting with the Metropolitan Water Reclamation District and as required with the Army
Corps of Engineers and the Illinois Department of Natural Resources.
• Coordination with Metra, permitting agencies, and the Village, including incorporation of
submittal review comments.
The project deliverables are proposed to include:
Technical Memorandum
See bullet points above for discussion of content.
CIORBA GROUP ; Consulting Engineers
EXHIBIT "1"
Plans
Cover Sheet
General Notes
Summary of Quantities
Existing Utility & Removal Plan
Proposed Storm Sewer Plan & Profile
Proposed Detention Facilities
Erosion Control Plan
Restoration Plan
Details
Specifications
Front End documents
General Provisions
Special Provisions
Ciorba's engineering fee for this work order will be $32,613.40 calculated based on contract hourly rates
as shown in the following tables.
=RBA GROUP : Consulting Engineers
Firm
Client
EXHIBIT "1"
CIORBA GROUP Consulting Engineers
Ciorba Group, Inc
Village of Morton Grove
County
Job No.
Cook
20458.03
Cost Estimate of
Consultant Services
Date 01/18116
ITEM
MANNOURS
(A)
32
PAYROLL
(B)
$ 3,622.00
(+R) TIMES
PAYROLL
(C)
DIRECT
COSTS
(D)
SERVICES
BY
OTHERS
lE)
TOTAL
IC+D+EI
$ 3,622.00
%
GRAND
TOTAL
11.41%
Wising., Dsu Co X¢ss& a Csurd ntid+
k4.9mph,caunei
70
$ 5,532.00
$ 390.00
$ 5,922.00
18.16%
Wein Ra.wron
109
$ 10,637.00
$ 407.50
$ 11,044.50
33.86%
Enginwing Plant
48
$ 4,776.00
$ 1,044.00
$ 407.50
$ 5,183.50
$ 1,044.00
15.89%
3.20%
OC/GIA
6
Project Meragmrrd&Admfiisason
8
$ 1,392.00
$ 1,392,00
4.27%
Nut and Hut
$ 4,405.40
$ 4,405.40
13.51%
TOTALS
273
$ 27,003.00
_
$ 1,205.00
$ 4,405.40
$ 32,613,40
100.00%
PRINTED 1/18/2016, 11:54 AM
EXHIBIT "1"
STAFF HOURS
Village of Morton Grove
Sites 18 J Development Drainage Engineerin
r
s
Grand
Total
t
s`
A
1C
W
s
s
A
W
1
o
6
'5
6:
a
Li
_�CCpp
Yyp
273
20
10
71
102
36
32
I. Meetings, Data Collection 8 Coordination Task Total:
010 Meetings Subtotal:
32
10
4
4
10
4
10
2
Meetings with ViHage - (2 mtg x 2 staff x 2 hrlmtg)
0
4
4
Prepare Agenda/Exhibits for Meetings 1 2 mtgs x 1 hrs/mtg)
2
2
011 Coordination Subtoist:
22
14
0
Coordination with Village
4
2
2
Coordination with Other Agency (Developer)
2
2
Coordination with Utildies
6
2
Coordination with MWRDGC
6
4
2
Coordination with Railroad
4
4
2. Topographic Survey Task Total:
020 Field Survey Subtotal:
70
64
30
32
12
32
Establish Control Points end Ties
6
4
4
Level Circuit
0
4
4
Horizontal Topography
32
16
16
Drainage Inventory
16
0
0
M;wakaband CSmbtlLNMmkpslpa.Vbam_GnnnenposeEtWoz0elII1_4415 MmpsI.r SVaaf GtlaLla6aVlo1laun PD.mpo., CGL GELS. IxM LHON ID011 REVfibm
Wart lanaktlown Stu..
1197016 hpa 1.01
KgCIORBA GROUP Consulllns Enginee•s
EXHIBIT "1"
STAFF HOURS
Village of Morton Grove
Sites 1 & J Development Drainage Engineerin
•
^ d
Grand
Total
it
5
S
I
c
y
a
W
iP
a.-
=
8
e
u
8.
E
f
rc
o
021 Process Survey Information Subtotal:
6
6
Down Loading Totai Station (1-2 hrs per down load every 2-3 days of topo)
2
2
Drafting Existing Conditions (4,000 ft per day)
4
4
3. Water Resources Task Total:
oat Stormwater Facility Design Subtotal:
109
51
2
10
4
29
13
68
34
Storm Sewer
8
8
Detention Design
8
4
4
Drainage Sheets
22
2
20
Drainage Details
4
2
2
Erosion and Sediment Control Plans
5
1
4
Landscaping Plans
4
4
a34 Reports i Location Drainage Studies subtotal:
16
8
8
Drainaea Tech Memo
16
8
8
035 Pernllts Subtotal:
42
2
6
8
26
Permit - ACOE
18
2
6
10
1
Permit- MWRDGC
12
4
6
Permit - Other (Metra)
12
4
5
2.1:2883•81888 .rmuL84rJrp.rk..aao,totiaw .a s pwlaW01W58 ea_6.1s O.mpn.r 50•811:8810.2•12183000 2181788181•1 CGI CELS • N. 5405_10017 REvl Sk ,
We*9r.118v60 8,7178,717303,.
130
13871016 Fou. 2 all
IERCIORBA GROUP Coosultino G+gineers
EXHIBIT »1"
STAFF HOURS
Village of Morton Grove
Sites I & 1 Development Drainage Engineering
b
g ' a
coins
Total'
0
s
a,
F
s
E
t5
1
F
L
u
a
c
4. Engineering Plans Tao Total:
055 Contract Plana Subtotal:
sa
22
2i
10
24s
12
Title Sheet
2
2
General Notes
4
2
2
Summary of Quantities
4
2
2
Disposition of Comments - 3 Submittals
12
6
s
ase Quantity Calculations Subtotal:
6
2
5
Quantities (Water Resources)
a
2
6
059 Specifications & Estimates Subtotal:
1e
12
s
Specifications
12
6
6
Estimate of Time (Pre -final & Final)
2
2
Estimate of Cost (Pre -final & final)
4
4
Mue.n ekM Glum.1 V.Y....iS,Wanon G»...Wrap®k1G 25 .O9 ak1S 0.m9•1.i Shwl OaluS.Wsvaler 2l•MmiMtCGICECS- DLNON_1DOT)6EVIxhm
Work Stukdvxn Ssudun
1115/200 Pop.3n11
GORBA GROUP Consu tiny Croineels
EXHIBIT "1"
IN-HOUSE DIRECT COSTS
Village of Morton Grove
Sites I & J Development Drainage Engineering
PHASE II
Topographic Survey
Description Unit Unit Cost Quantity Extended Cost
Vehicle (day) day $ 65.00 6 $ 390.00
Total: $ 390.00
Water Resources
Description Unit Unit Cost Quantity Extended Cost
CADD Charges hour $ 15.00 20 $ 300.00
Copies sheet $ 0.10 750 $ 75.00
Full Size Prints sheet $ 1.25 26 $ 32.50
Total: $ 407.50
Engineering Plans
Description Unit Unit Cost Quantity Extended Cost
CADD Charges hour $ 15.00 20 $ 300.00
Copies sheet $ 0,10 750 $ 75.00
Full Size Prints sheet $ 1.25 26 $ 32.50
Dempster CGI_CECS - DLM (NON_IDOT) REV1.x1sm InHouseDC
Total: $ 407.50
CIORBA GROUP Consulting Engineers
EXHIBIT "1"
VILLAGE OF MORTON GROVE
SITES I & J DEVELOPMENT DRAINAGE
10
Task Name
Duration
Stan
Finish
Jany6[v
eMuary
arch
Ayyypr�•
Matt
J
1 6
13'221
g
2 6 0'14
1 .5
3
172126
2 6
1 UI OL2L26
4
6 121620124:20
1 6,9
1311721.2529
1
1
PRELIMINARY DESIGN
30 days
Mon1125t16
Mon3Mf6
...:..
.
_162216
_9
___•
Village Board Approval
0 days
0 days
Mon 1125616
Wed 1127616
Mon 125n6
Wadi/27M
%/2
147
5
3
Noticeto Proceed
4
Kickoff Meeting with Village
0days
Ikon 211/12-
Mon 2/1/16
-
•
2h
6
Concept Design
20 days
Mon 2/8116
Mon317616
i
'1"
" i
6
Stage l Survey
3 days
Mon 24O116
Wed 7110/16
7
Preperetionol Drainer Tern Mwml Concept Ram
12 days
Thu 2/11116
Fri 2126116
0
9
Submittal• Damp Tech Mama /Comept Plena
0days
Fri 7126116
Po2126116
1aff
♦
26
Village Review • Drainage Tach Mann/Swept Plans
5days
lam2/29/16
Fd&d06
VtillEgs
10
Concept Review Meeting with3411ege
0daya
Mm 32/16
Man 3!2166
4 3i
11
FINAL DESIGN
77 days
Thu 3110116
Fn 0124616
-
,,,,,,r-,,,,,,...,.n.I
—........-i—,—.4.--.
,,-•
•,'1'7
1 i,,,-.....4
.f.,
4,;
12
Preliminary Design
77 days
Tho 3716116
Fd 6624618
13
Stage Sunray
2dys
Thu 3/10/16
Fir 3/11/16
4
Ij
14
PrdminaryDespm
10 days
tMn3/14116
Fri 3/25/16
Maga
---116
15
Submittal - Pnerninery Design 8 Permi16ng
0 days
Fd 3/25/lb
Fri 3.125/16
♦ 125
----1-
14
1A1e5e Revie4.-Rolnrary0esrga
Sdays
Mm 128/16
Fir 4:1/16
I
VNlags
! ::-: ;.
-.
i�v�„ss•'_
..
<='+:-',r
.
17
Pemrtang Review and Acquisition
65 days
Mon 328116 Fd 624/16
16
Drabs! (Wisps
15 oays
Mon 4/1116 Fri 4/22/16
1i `.S-77,2'
/NS
19
Praline Design
10 days
Mon 414/15 Fri 4/15116
20
Subridat-Fraknal Design
0day6
Fn4115116 Fit 4/15/16
6
I'0
21
Village Review • Refine' Deign
5 days
Mon 4118116 Fri 4/22/16
r
Villk
ge
22
Final Oeisgn
10 days
Mon 41251161 Fri 5!6/16
vb.
23
Final Design
10 days
Mon 4/25/16 Fn 5/6/16
2.4
Submittal - RMI Design
0 day 1
Fn 5/6116 Fri 516/16
4
616
PESION VAELanHAAY a MAL PHA5Ea ret JAH 2016
aCHEMAC
Task 6N=193=72agn Proled Summary W-'-"1-47 Manual Summary Rollup omaarismaueoinearoino
Milestone i Group By Summary Manuel Summery
Summary Inactive Teak Stan•only G
Rolled Up Task MillEFE27=== Inactive Tesk i r Finis/only 2
Rotted Up Milestone G Inactive Milestone Progress
Rolled Up Progress Inactive Summary --1 - - - - ,rte Deadline
Split Manual Teak BMWAKADiailialibilata
ExtemalTesks °"°"=RSR=' Ourahononly -...- __. �....
EXHIBIT "9a'
STAFF HOURS
Village of Morton Grove
Sites I & J Development Drain ge Engineering
i
y
. 4__.
Grand
Total
iI
Z
c
`a,5Eu1
I
Z
m
1
�'
e1
£
i
z
�gtt
N
G
4-
4
I
It
11.
S.
QC/QA
08D QC/QA
Task Total:
Subtotal:
6
6
6
6
Water Resources (3 Plan Submiitats, 2 W Each)
e
6
6.
Project Management IL Administration
too Project Management & Administration
Task Total.
subtotal:
8
8
8
8
Project Administration
4
4
Project Management
a
4
M VAr a.bCt4'bULVMNc{ovM'..WrtenGm+Wraposals*W6a5Bm 8115 D.mpau, CGICECa • 0.N 0.014._=r)
w.rx ar..k*.mSV W.
1n8RO16 p.p.4o11
CIORBA GROUP Consulting Ccgineets
EXHIBIT "1"
C ORBA GROUP j Consulting Engineers
FIRM NAME
PRIME/SUPPLEMENT
Client
Ciorba Group, Inc.
Prime
Village of Morton Grove
ESCALATION FACTOR
0.00%
CLASSIFICATION
CURRENT RATE
ESCALATED RATE
Principal
Senior Project Manager
Senior Project Engineer
Project Engineer
Senior Engineer
Staff Engineer 11
Staff Engineer I
Engineering Technician I1
Engineering Technician 1
Senior Structures Engineer
Structures Engineer
Senior CADD Technician
Resident Engineer 111
Resident Engineer II
Resident Engineer I
Construction Engineer 1
Party Chief
Instrument Person / Rod Man
$180.00
$174.00
$132.00
$117.00
$94.00
$82.00
$74.00
$74.00
$58.00
$106.00
$78.00
$97.00
$122.00
$94.00
$83.00
$74.00
$90.00
$66.00
$180.00
$174.00
$132.00
$117.00
$94.00
$82.00
$74.00
$74.00
$58.00
$106.00
$78.00
$97.00
$122.00
$94.00
$83.00
$74.00
$90.00
$66.00
DATE 01/18/16
Printed 1/18/2016 11:46 AM
Legislative Summary
ACCEPTING THE PUBLIC IMPROVEMENTS
CONSTRUCTED AS PART OF THE LEXINGTON STATION DEVELOPMENT
Introduced:
Synopsis:
Purpose:
Background:
Programs, Departments
or Groups Affected
Fiscal Impact:
Source of Funds:
Workload Impact:
Administrator
Recommendation:
First Reading:
Special Considerations
or Requirements:
Respectfully submitted:
Prepared by:
January 25, 2016
To accept the public improvements constructed within the public right-of-way as part
of Lexington Station development.
To ensure the public improvements within the Village's rights-of-way are constructed
in substantial conformance with the plans and specifications approved by the Village's
building and engineering departments and a stipulation of what will be perpetually
operated and maintained by the Village.
Lexington Station is a Planned Unit Development located within the Trafalgar Square
Planned Unit Development and the Village of Morton Grove. Lexington Station
improvements included small areas of sidewalk and grass parkway, short lengths of
curb and gutter, small asphalt pavement patches and parkway trees within the Village's
right-of-way. Construction work was completed in November 2015. The developer has
provided the required maintenance agreement for the repair or replacement of defective
materials and workmanship for two years from the effective date of the Village's
acceptance of these improvements. The Municipal Code includes a process for
accepting these public improvements and the developer has satisfied the requirements.
Passage of this resolution constitutes formal acceptance of these improvements.
Public Works.
None.
N/A
Maintenance obligations specified in the Municipal Code and conforming to the
policies of the Public Works Department will be provided by the Public Works
Department on these accepted improvements as part of their normal operations.
Approval as presented.
N/A
None
Ra
Rev' . ed by:
h E. Czerwinski illage Administrato
Chris Tomich, Village Engineer
onte, Director Public Works
Reviewed by:
Teres
an Liston, Corporation Counsel
RESOLUTION 16-06
ACCEPTING THE PUBLIC IMPROVEMENTS
CONSTRUCTED AS PART OF THE LEXINGTON STATION DEVELOPMENT
WHEREAS, the Village of Morton Grove (Village), located in Cook County, Illinois, is a home rule
unit of government under the provisions of Article 7 of the 1970 Constitution of the State of Illinois, can
exercise any power and perform any function pertaining to its government affairs, including but not limited
to the power to tax and incur debt; and
WHEREAS, Lexington Station is a planned unit development located within the Trafalgar
Square Planned Unit Development and the Village of Morton Grove; and
WHEREAS, public improvements, including sidewalk, curb and gutter and parkway trees, have
been depicted on "Concord Drive Public Improvement Acceptance Exhibit" issued December 18, 2015,
and Public Improvement Warranty Bond issued December 18, 2015, which are attached hereto as
Exhibit "A", have been constructed according to the plans and specifications approved by the Village's
building and engineering department; and
WHEREAS, the Village staff has recommended these public improvements and rights-of-way be
accepted by the Corporate Authorities.
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF MORTON GROVE, COOK COUNTY, ILLINOIS AS
FOLLOWS:
SECTION 1: The Corporate Authorities do hereby incorporate the foregoing WHEREAS clauses
into this Resolution as though fully set forth therein thereby making the findings as hereinabove set forth.
SECTION 2: The public improvements and rights-of-way as set forth in Exhibit "A" are hereby
accepted for ownership and maintenance by the Village of Morton Grove subject to the code requirements
and regulations of the Village of Morton Grove.
SECTION 3: The Village Administrator or his designee is authorized to take all steps necessary to
release all performance guarantees on behalf of the Village when appropriate.
SECTION 4: This Resolution shall be in full force and effect upon its passage and approval.
PASSED THIS 25th DAY OF JANUARY 2016
Trustee Grear
Trustee Minx
Trustee Pietron
Trustee Ramos
Trustee Thill
Trustee Witko
APPROVED BY ME THIS 256 DAY OF JANUARY 2016
Daniel P. DiMaria, Village President
Village of Morton Grove
Cook County, Illinois
ATTESTED and FILED in my office
This 26th DAY OF JANUARY 2016
Connie Travis, Village Clerk
Village of Morton Grove
Cook County, Illinois
EXHIBIT "A"
CERTIFICATE OF CONFORMANCE OF CONSTRUCTED IMPROVEMENTS
Development Legal Name: Planned Unit Development at Lexington Station (8320-8342
Concord Drive)
Developer: Lexington Station LLC
I, Chris Tomich, as Village Engineer of Morton Grove, certify all improvements required to be
constructed or installed in, or upon, such streets or thoroughfares in connection with the approval
of the plat of subdivision by the village board of trustees, have been fully completed and the
construction or installation thereof has been approved by him, and that provisions regarding the
performance and maintenance guarantees have been met.
Signed X
Date
! i V// .L.
■
1
MATROS*ADA.... pus]
w ...Haw Ikiportaaa
9NIN]3NI9N] II]9]VN
1'7
na.m vwoxwaw w W ~�
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31 p[
119IHX3 3)N11143»/ 1N3W3AO114WI ? 3
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§
d:
is
I
EXHIBIT "A"
PUBLIC IMPROVEMENT WARRANTY BOND (CONCORD DR. R.O.W. NOT INCLUDING ACCESS DRIVES)
HAEGER ENGINEERING, EEC
Consulting Engineers and Lend Surve .rs
Protect: LEXINGTON STATION
Location: Morton Grove, Illinois
Project #: 10087E
Prepared:
Checked:
Dare -
TAS
TAS
12/18/15
7. IMPROVEMENTS IN THE CONCROD DRIVE R.O.W. (NOT INCLUDING ACCESS DRIVES)
Unit
Unit Price
Total Amount
hem No.
DeecrlptIon
Quantity
1.01
1-1/2' HMA SURFACE COURSE (_24' WIDE PATCH ADJ TO CURB)
73
SY
512.00
5876.00
54,837.50
1.02
5' P.C.C. SIDEWALKWER 4' CA -6 AGGREGATE BASE COURSE
1075
SE
54.50
1.03
CURB 8 GUTTER, 86.12
200
I$
820.00
54,000.00
1.04
CURB 8 GUTTER, 86.12. DEPRESSED
130
IF
$25.00
33,250.00
1.05
ADA COMPLIANT DETECTABLE WARNING SURFACE,24" WIDTH
15
LF
550.00
5750.00
1 06
PARKWAY RESTORATION t6' TOPSOIL, SEED 8 BLANKET)
155
SY
53,00
5465.00
1.07
RELOCATED STREET SIGN
1
EA
5200.00
3200.00
1.08
PARKWAY TREES
3
EA
3450.00
51,350.00
TOTAL
315,728.50
51,572.85
1038 OF TOTAL FOR WARRANTY BOND AMOUNT
Page 1 of 1
WARRANTY BOND
Bond No. CA4099119
Great American insurance Company
301 E. Fourth Street
Cincinnati, OH 45202
KNOW ALL MEN BY THESE PRESENTS, that we, Lexington Station, LLC, as Principal, and Great
American insurance Company licensed to do business in the State of Illinois, as Surety, are held and
firmly bound unto the Village of Morton Grove (Obligee), in the penal sum of One Thousand. Five
Hundred Seventy -Two and 85/100 Dollars ($1.572.85), lawful money of the United States of America,
for the payment of which sum, well and truly to be made, the Principal and Surety do bind themselves,
their heirs, executors, administrators, and successors and assigns, jointly and severally, firmly by these
presents.
WHEREAS, the Principal entered into a Resolution with the Obligee dated January 25, 2016 for Two
Year Maintenance bond for specific Public improvements made at Lexington Station ("Work").
NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Principal shall
maintain and remedy said Work free from defects in materials and workmanship for a period of Two
year(s) commencing on 25th day of January, 2016 (the "Maintenance Period"), then this obligation shall
be void; otherwise it shall remain in full force and effect.
Notwithstanding the provisions of the Resolution, the term of this bond shall apply from 25th day of
January, 2016, until 25th day of January, 2018, and may be extended by the Surety by Continuation
Certificate. However, neither nonrenewal by the Surety, nor the failure or inability of the Principal to file
a replacement bond in the event of nonrenewal, shall itself constitute a Toss to the obligee recoverable
under this bond or any renewal or continuation thereof. The liability of the Surety under this bond and all
continuation certificates issued in connection therewith shall not be cumulative and shall in no event
exceed the amount as set forth in this bond or in any additions, riders, or endorsements properly issued
by the Surety as supplements thereto.
FURTHERMORE, arty dispute regarding the enforceability of this WARRANTY bond will be bound by
the laws of the State of Texas. Any claims made against this bond must be presented, via certified mail,
retum receipt requested, within 30 days of the expiration date listed above to the following address:
Great American Insurance Company, deliveries only use.
Sealed with our seals and dated this 20th day of January , 2016.
PRINCIPAL
Lexington Station, LLC
Witness
7
Witness: Hina Azam
Agreed and acknowledged this day of , 20
By:
, Obligee
, Title
Great A = an Ins rance Company
Attomey-in-Fa : iDiem Re' • ger
Surety
Company
Acknowledgment:
State of Illinois
County of . C99k . ss.:
On this 20th day of Januar?' 2016.., before me
personally appeared....William.Reidieger , to be known,
whom being by me duly sworn, did depose and say: that he/she resides
at.. S.chawi hung, IL ..,
that he/she is the Attorney In Fact .o f Great American
Insurance Company , the corporation described in and which
executed the annexed instrument; that he/she knows the corporate seal of
said corporation that the seal affixed to said instrument is such corporate
seal; that it was so affixed by order of the Board of Directors of said
corporation; that he/she signed his/her name thereto by like order; and
that the liabilities of said corporation do not exceed its assets as
ascertained in the manner provided by law.
Notary Public in and t6r the above County and State.
02/23/2019
My commission expires
GREAT AMERICAN INSURANCE COMPANY
Administrative Office: 301 E 4TH STREET • CINCINNATI, OHIO 45202 • 513-369-5000 • FAX 513-723-2740
The number of persons authorized by
this power of attorney is not more than 1
Bond No. CA4099119
POWER OFATTORNEY
KNOW ALL MEN BYTHESE PRESENTS: That the GREATAMERICAN INSURANCE COMPANY, a corporation organized and existing under
and by virtue of the laws of the State of Ohio, does hereby nominate, constitute and appoint the person or persons named below its true and lawful attomeyin-
f3act, for it and in its name, place and stead to execute on behalf ofthe said Company, as surety, the specific bond, undertaking or contract of suretyship referenced
herein; provided that the liability of the said Company on any such bond, undertaking or contract of suretyship executed under this authority shall not exceed
the limit stated below. The bond number on this Power ofAttomey must match the bond number on the bond to which it is attached or it is invalid.
Name Address
William Reidinger One Century Centre, 1750 East Golf Road
Schaumburg, IL 60173
Principal: Lexington Station, LLC
Obligee: Village of Morton Grove
Limit ofPower
$100,000,000.00
IN WITNESS WHEREOF the GREAT AMERICAN INSURANCE COMPANY has caused these presents to be signed and attested by its appropriate
officers and its corporate seal hereunto affixed this 25th day of January, 2016.
Attest
GREAT AMERICAN INSURANCE COMPANY
Zwize 141,-4
AKWMM Seerefaty
DAVID C. KIIC.101 W77477.2405)
STATE OF OHIO, COUNTY OF HAMILTON - ss:
On this 25th day of January2016 , before me personally appeared DAVID C. KITCHIN, to me
known, being duly sworn, deposes and says that be resides in Cincinnati, Ohio,'that he is a Divisional Senior Vice President of the Bond Division of Great
American Insurance Company, the Company described in and which executed the above instrument; that he knows the seal of the said Company; that the seal
affixed to the said instrument is such corporate seal; that it was so affixed by authority of his office under the By -Laws of said Company, and that he signed his
name thereto by like authority.
ry�tilailatCtio
Spres 06484020
a ciel_htoy
This Power ofAttomey is granted by authority of the following resolutions adopted by the Board of Directors of Great American Insurance Company
by unanimous written consent dated June 9, 2008.
RESOLVED: That the Divisional President. the several Divisional Senior Me Presidents, Divisional Ince Presidents and Divisonal .Assistant Kee
Presidents, or any one of them, be and hereby is authorized, from dine to time, to appoint one or more Attorneys -in -Fact to execute on behalf of the Company.
as surety, any and all bonds, undertakings and contracts of suretyship, or other written obligations in the nature thereof to prescribe their respective duties and
the respective limits of their authority; and to revoke any such appointment at any time.
RESOLVED FURTHER That the Company seal and the signature of any of the aforesaid officers and any Secretary or Assistant Secretary of the
Company may be affixed by facsimile to any power of attorney or certificate of either given for the execution of any bond, undertaking contract of suretyship.
or other written obligation in the nature thereof such signature and seal when so used being hereby adopted by the Company as the original signature of such
officer and the original seal of the Company. to be valid and binding upon the Company with the same force and effect as though manually affixed.
CERTIFICATION
I, STEPHEN C. BERAHA, Assistant Secretary of Great American Insurance Company, do hereby certify that the foregoing Power ofAttomey and
the Resolutions of the Board of Directors of lune 9, 2008 have not been revoked and are now in full force and effect.
Signed and sealed this 25th day of January, 2016.
511940 (ahs)
4(-
Legislative Summary
Ordinance 16-02
AMENDING AND RESTATING THE VILLAGE OF MORTON GROVE RETIREMENT PLAN
EFFECTIVE JANUARY 1, 2016
Introduced:
Synopsis:
Purpose:
Background:
Programs, Departments
or Groups Affected
Fiscal Impact:
Source of Funds:
Workload Impact:
Administrator
Recommendation:
First Reading:
Special Considerations
or Requirements:
Respectful]
January 25, 2016
To authorize amendments and reinstatement of the Village of Morton Grove General
Employees Retirement Plan.
The Internal Revenue Service requires general employees retirement plans to be
periodically reviewed.
The Village of Morton Grove General Employees Retirement Plan provides retirement
benefits for employees other than sworn police officers and firefighters hired prior to
January 1, 2005 (employees hired after this date participate in the IMRF Retirement Plan).
The plan was initially established in 1965 and has been periodically amended since that
time. In order to comply with changes within the Internal Revenue Code, and to continue
to qualify under Sections 401a and 501a of the Internal Revenue Code, the Village seeks to
amend the plan and for convenience has restated the plan to incorporate all amendments
approved prior to this time. These changes have been recommended by the Village's
Special Counsel and must be approved and submitted to the Internal Revenue Service prior
to January 31, 2016. The IRS also requires all affected employees receive notice of these
changes. The Village has subsequently applied and posted notice of these changes to the
affected Village employees.
Police Department and general public.
A "user fee" of $2,500 will need to be submitted in connection with the amendment for the
U.S. Treasury for the IRS user fee.
General Fund
The management and supervision of this contract will be performed by the Administration,
Legal, and Finance Departments as part of their normal operations.
Approval as presented.
Due to the strict timeline imposed by the IRS, staff is requesting the second reading be
waived. Submission of the Plan must be completed by January 31, 2016.
None
miffed:
R
Prepared by:
Teresa Hoffman
Czerwinski, V
e Administrator
n, Corporation Counsel
Reviewed by:
Hanna Sullivan, Finance Director/Treasurer
ORDINANCE 16-02
AMENDING AND RESTATING THE VILLAGE OF MORTON GROVE
RETIREMENT PLAN EFFECTIVE JANUARY 1, 2016
WHEREAS, the Village of Morton Grove (Village), located in Cook County, Illinois is
a home rule unit of government under the provisions of Article 7 of the Constitution of the
State of Illinois, can exercise any power and perform any function pertaining to the government
affairs, including but not limited to the power to tax and incur debt; and
WHEREAS, the Village, has established a pension plan for the benefit of its eligible
civilian (non -sworn) employees with a group annuity deposit administration contract on
December 21, 1965, effective January 1, 1966; and
WHEREAS, the plan was subsequently amended and restated by the Village effective
January 1, 1981, and has periodically been amended thereafter including January 1, 2008; and
WHEREAS, in order for the plan to continue to qualify under Sections 401a and 501a
of the Internal Revenue Code of 1986, the Village desires to further amend the plan effective
January 1, 2016, and for convenience deemed it desirable to restate the provisions of the plan in
its entirety rather than amend specific provisions; and
WHEREAS, in addition to restated the plan to include all prior approved amendments,
the Village desires to amend the plan in certain minor respects so it complies with technical.
changes to the Internal Revenue Code including certain minimum distribution rules and IRS
required limitation of pension benefits.
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF MORTON GROVE, COOK COUNTY, ILLINOIS AS
FOLLOWS:
SECTION 1: The Corporate Authorities do hereby incorporate the foregoing
WHEREAS clauses into this Ordinance as though fully set forth therein thereby making the
findings as hereinabove set forth.
SECTION 2: The Corporate Authorities do hereby approve and adopt the Village of
Morton Grove Retirement Plan as amended and restated effective January 1, 2016, in
substantial conformity with Exhibit "A".
SECTION 3: The Village President is hereby authorized and empowered to sign the
Retirement Plan and all related documents and the Village Clerk is hereby authorized to attest
such signature.
SECTION 4: The Village Administrator and the Director of Finance/Treasurer and/or
their designees are hereby authorized to take all steps necessary to implement the Village of
Morton Grove Retirement Plan as amended and restated.
SECTION 5: This Ordinance shall be in full force and effect from and after its passage,
approval, and publication in pamphlet form according to law.
PASSED this 25th day of January 2016.
Trustee Grear
Trustee Minx
Trustee Pietron
Trustee Ramos
Trustee Thill
Trustee Witko
APPROVED by me this 25th day of January 2016.
Daniel P. DiMaria, Village President
Village of Morton Grove
Cook County, Illinois
APPROVED and FILED in my office
this 26th day of January 2016.
Connie Travis, Village Clerk
Village of Morton Grove
Cook County, IIlinois
VILLAGE OF MORTON GROVE
RETIREMENT PLAN
(as amended and restated effective January 1, 2016)
Jay P. Tarshis
Arnstein & Lehr LLP
120 South Riverside Plaza
Suite 1200
Chicago, IL 60606
TABLE OF CONTENTS
Page
ARTICLE I
Definition of Terms
ARTICLE II.
Employees Entitled to Participate
2.1 Entry Date 11
2.2 Leave of Absence 11
2.3 Break in Service 11
2.4 Eligibility Determined by the Employers 12
ARTICLE III.
Employer Contributions
3.1 Annual Contribution 12
3.2 Actuarial Assumptions 12
ARTICLE IV.
Mandatory Employee Contributions
4.1 Mandatory Employee Contributions 12
ARTICLE V.
Retirement Benefits
5.1 Monthly Retirement Benefit 13
5.2 Adjustment to Current Compensation 13
5.3 Normal Retirement Benefit 13
5.4 Early Retirement Benefit 13
5.5 Continued Employment 13
5.6 Disability Benefit 14
5.7 Return of Mandatory Employee Contributions 16
5.8 Rollover Accounts 16
5.9 Limitation on Benefits 16
ARTICLE VI.
Pre -Retirement Death Benefit
6.1 Pre -Retirement Death Benefit 16
ARTICLE VII.
Termination Benefits
7.1 Determination of Benefits Upon Termination of Employment 16
7.2 Service Upon Termination 17
7.3 Amendment of Vesting Schedule 17
7.4 Forfeitures 18
ARTICLE VIII.
Denial of Claims and Appeal Procedure
8.1 Claims Procedure 18
8.2 Claims Review Procedure 18
ARTICLE IX.
Valuation of the Fund
ARTICLE X.
Forfeitures
ARTICLE XI.
Payment of Benefits
11.1 Normal and Optional Forms for Payment of Retirement Benefits. 19
11.2 Time of Payment of Benefits. 20
11.3 Designation of Beneficiary. 20
11.4 Participant Information. 21
11.5 Distribution for Minor or Disabled Beneficiary 21
11.6 Indemnification of Plan Administrator 21
11.7 Proper Payee of Benefits in Dispute. 22
11.8 Required Proof for Administrator 22
11.9 Distribution Requirements. 22
ARTICLE XII.
Administrator's Powers, Rights and Duties
12.1 Investment Powers and Duties of the Administrator 33
12.2 Defense of Plan. 33
12.3 Authority of Administrator. 33
12.4 Reliance on Administrator. 33
ARTICLE XIII.
Funding
13.1 Funding Policy. 33
13.2 Minimum Funding Standard Account. 34
• ii
ARTICLE XIV.
Loans to Participants
ARTICLE XV.
Administration
15.1 Administration of the Plan. 34
15.2 Adjustments. 34
15.3 Payment of Administrative Expenses 34
15.4 Annual Report of the Administrators. 34
15.5 Administrators Protective Clause. 34
15.6 Fiduciary Responsibility. 35
ARTICLE XVI.
Amendment and Termination
16.1 Amendment of Plan 35
16.2 Termination. 36
16.3 Total Vesting Upon Termination 36
16.4 Events of Plan Termination. 36
ARTICLE XVII.
Miscellaneous
17.1 Participant's Rights. 36
17.2 Benefits Solely from Group Contract 36
17.3 Status of Group Contract and Insurer. 37
17.4 Prohibition Against Diversion of Funds. 37
17.5 Certified Evidence. 37
17.6 Named Fiduciaries and Allocation of Responsibility. 37
17.7 Returned Distribution. 38
17.8 Return of Contribution. 38
17.9 Governing Law. 38
17.10 Merger or Consolidation. 38
17.11 Notice Upon Distribution. 38
iii
ARTICLE XVIII.
Special Rules Relating to Veterans Reemployment Rights Under USERRA
ARTICLE XIX.
Portability
19.1 Portability. 39
19.2 Definitions. 39
ARTICLE XX.
Limitation on Benefits
iv
VILLAGE OF MORTON GROVE
RETIREMENT PLAN
(as amended and restated effective January 1, 2008)
The Village of Morton Grove and the Board of Library Directors of the Village of
Morton Grove (hereinafter referred to collectively as the "Employers" and individually as
an "Employer") established a retirement plan referred to as the "Village of Morton Grove
Retirement Plan" (the "Plan") effective January 1, 1966, for the benefit of their
respective eligible employees. Each of the Employers are a municipality or semi -
governmental agency, and the Plan is a "governmental plan" within the meaning of
Section 414(d) of the Internal Revenue Code of 1986 and Section 3(52) of the
Employee Retirement income Security Act of 1974.
The Pian was subsequently amended and restated by the Employers effective
January 1, 1981 and periodically amended thereafter. In order for the Plan to continue
to qualify under Sections 401(a) and 501(a) of the Internal Revenue Code of 1986, the
Employers now desire to further amend the Plan, effective January 1, 2016 (unless a
different effective date is indicated), and for convenience deem it desirable to restate
the provisions of the Plan in their entirety rather than amend specific provisions
piecemeal.
NOW, THEREFORE, pursuant to the provisions of Section 16.1 of the Plan and
in accordance with resolutions duly adopted by each of the Employers, the Employers
hereby amend the terms and conditions of the Plan in the form and manner hereinafter
contained.
ARTICLE
Definition of Terms
Unless the context otherwise clearly indicates, the following terms shall be
construed as hereinafter defined:
1.1 The term "Accrued Benefit" shall mean an amount equal to the greater of
(a) the monthly normal retirement benefit payable commencing at a Participant's normal
retirement date determined in accordance with Section 5.3 (based on the Participant's
Average Monthly Compensation and Years of Benefit Accrual at his termination of
employment), or (b) an annuity which can be purchased on a single premium basis with
a Participant's Mandatory Employee Contributions together with interest thereon at the
rate of five percent (5%) per annum from the date of contribution to the Participant's
termination of employment. This interest rate shall be changed according to Section
411(c)(2)(D) of the Code and the Regulations thereunder. The annuity provided in (b)
above shall be payable in the same form as the Participant's monthly normal retirement
benefit.
The Accrued Benefit of any Participant electing to participate in the Illinois
Municipal Retirement Fund, 40 ILCS 5/7-101 et seq. ("IMRF"), as herein provided, shall
be frozen effective December 31, 2004. The benefit of any Participant who elects to
participate in IMRF shall be paid in the manner and at such time as shall be otherwise
provided in the Pian.
1.2 The term "Actuarial Equivalent" shall mean an amount equal in terms of
present value based on the following actuarial assumptions: pre -retirement investment
return — 7%; post—retirement investment return -- 8%; and mortality — UP 1984 Table
set back 3 years for both males and females. The annual compensation of active
Participants is assumed to increase at the rate of five percent (5%) per annum,
compounded annually. Total base salary is assumed to increase at the rate of 4% per
year. Participants are assumed to terminate their employment due to causes other than
retirement, death or Permanent Disability based on the following schedule:
Employee Withdrawal Rate
Per 1,000 Employees
25 54
30 48
35 44
40 39
45 31
50 16
55 4
60 and over 0
For Plan Years beginning after December 31, 1999, solely for purposes of
satisfying Section 415(b)(2)(E) of the Code and the limitations of Article XX of the Plan,
the term "Actuarial Equivalent" shall have the meaning provided below.
1. For purposes of determining the amount of a distribution in a form other
than in an annual benefit that is non -decreasing for the life of the
Participant or, in the case of a qualified pre -retirement survivor annuity,
the life of the Participant's spouse; or that decreases during the life of a
Participant merely because of the death of the surviving annuitant (but
only if the reduction is to a level not below 50% of the annual benefit
payable before the death of the surviving annuitant) or merely because of
the cessation or reduction of social security supplements or qualified
disability payments, Actuarial Equivalence will be determined on the basis
of the Applicable Mortality Table (defined below) and Applicable Interest
Rate under IRC §417(e), if it produces a benefit greater than that
determined under the preceding paragraph. The preceding paragraphs of
this Section will not apply to the extent that they would cause any benefits
under the Plan to fail to satisfy the requirements of IRC §415(b) or Regs.
§1.401(a)(4)-6 and Regs. §1.411(c) -1(c).
2
The term "Applicable Interest Rate" is the rate of interest on Thirty Year Treasury
securities as specified by the Commissioner for the "Look Back Month" for the "Stability
Period." The Look Back Month applicable to the Stability Period is the fourth (4th)
calendar month preceding the first day of the Stability Period. The Stability Period is the
calendar year that contains the "Annuity Starting Date" for the distribution and for which
the Applicable Interest Rate remains constant. The Annuity Starting Date is the first day
of the first period for which an amount is paid as an annuity or any other form of
payment. A Plan amendment that changes the date for determining the Applicable
Interest Rate (including an indirect change as a result of a change in Plan Year) shall
not be given effect with respect to any distribution during the period commencing one
year after the later of the amendment's effective date or adoption date, if, during such
period and as a result of such amendment, the Participant's distribution would be
reduced. The Applicable Mortality Table is set forth in Rev. Rul. 2001-62, 2001-53,
I.R.B. 632.
1.3 The term "Anniversary Date" shall mean December 31 of each year.
1.4 The term "Average Monthly Compensation" shalt mean the monthly
average compensation of the Participant during the forty-eight (48) consecutive months
during which the Participant received his highest compensation, divided by forty-eight
(48) to determine the monthly average. If a Participant has less than forty-eight (48)
consecutive months of employment with an Employer then the average shall be
determined by dividing his total compensation during his total consecutive months of
employment by the number of months in such period.
For purposes of determining a Participant's Average Monthly Compensation,
compensation shall be determined in accordance with Section 1.7.
1.5 The term "beneficiary" or "designated beneficiary" means the person(s) or
entity to whom the benefits of a deceased Participant are payable.
1.6 The term "Code" shall mean the internal Revenue Code of 1986, as
amended.
1.7 The term "compensation" shall mean all remuneration paid by the
Employer on behalf of any employee for each Plan Year for services rendered to an
Employer, but excluding:
(a) Any compensation paid to the Participant for overtime work,
bonuses, lump sum payments for an employee's non-use of paid days off and
holidays (such as sick days, vacation days and "floating" holidays) or any other
non-recurring forms of compensation;
(b) All distributions and Employer contributions made on behalf of an
employee under this Plan or any other employee benefit plan maintained by an
Employer;
(c) Any compensation paid in a form other than cash; and
3
(d) Any compensation, other than bonuses, accrued and unpaid for
any incomplete pay period in which the Plan Year ends (which shall be included
in compensation for the Plan Year in which paid).
In addition to other applicable limitations set forth in the Plan, and
notwithstanding any other provision of the Plan to the contrary, for Plan Years beginning
after December 31, 1995, the annual compensation of each employee other than a
"grandfathered Participant" (defined below) taken into account under the Plan shall not
exceed the OBRA '93 annual compensation limit. The OBRA '93 annual compensation
limit is $150,000, as adjusted by the Commissioner for increases in the cost of living in
accordance with section 401(a)(17)(B) of the Internal Revenue Code. The cost -of living
adjustment in effect for a calendar year applies to any period, not exceeding 12 months,
over which compensation is determined (determination period) beginning in such
calendar year. If a determination period consists of fewer than 12 months, the OBRA '93
annual compensation limit will be multiplied by a fraction, the numerator of which is the
number of months in the determination period, and the denominator of which is 12.
For plan years beginning after December 31, 1995, any reference in this
Plan to the limitation under section 401(a)(17) of the Code shall mean the OBRA '93
annual compensation limit set forth in this provision.
If compensation for any prior determination period is taken into account in
determining an employee's benefits (other than a grandfathered Participant) accruing in
the current plan year, the compensation for that prior determination period is subject to
the OBRA '93 annual compensation limit in effect for that prior determination period. For
this purpose, for determination periods beginning before the first day of the first plan
year beginning after December 31, 1995, the OBRA '93 annual compensation limit is
$150,000, as adjusted.
For limitation years beginning after December 31, 1997, compensation
paid or made available during such limitation year shall include any elective deferral (as
defined in Code Section 402(g)(3)) and any amount which is contributed or deferred by
the Employer at the election of the employee and which is not includible in the gross
income of the employee by reason of Section 125, 457 and (for limitation years
beginning on or after January 1, 2001) Code Section 132(f)(4).
The term "415 Compensation" shall include the Participant's wages,
salaries, fees for professional services and other amounts for personal services actually
rendered in the course of employment with an Employer maintaining the Plan (including,
but not limited to, commissions paid salesmen, compensation for services on the basis
of a percentage of profits, commissions on insurance premiums, tips and bonuses and
in the case of a Participant who is an employee within the meaning of Code Section 401
(c)( 1) and the regulations thereunder, the Participant's earned income (as described in
Code Section 401(c)(2) and the regulations thereunder)) paid during the limitation year,
not to exceed, however, Two Hundred Thousand Dollars ($200,000) (unless adjusted in
the same manner as permitted under Code Section 415(d)).
4
"415 Compensation" shall exclude (1) (A), contributions made by the
Employer to a plan of deferred compensation to the extent that, before the application of
the Code Section 415 limitations to the Plan, the contributions are not includible in the
gross income of the employee for the taxable year in which contributed, (8)
contributions made by the Employer to a plan of deferred compensation to the extent
that all or a portion of such contributions are recharacterized as a voluntary employee
contribution; (C) Employer contributions made on behalf of an employee to a simplified
employee pension plan described in Code Section 408 (k) to the extent such
contributions are deductible by the employee under Code Section 219 (a) , (D) any
distributions from a plan of deferred compensation regardless of whether such amounts
are includible in the gross income of the employee when distributed except that any
amounts received by an employee pursuant to an unfunded non-qualified plan to the
extent such amounts are includible in the gross income of the employee; (2) amounts
realized from the exercise of a non-qualified stock option or when restricted stock (or
property) held by an employee either becomes freely transferable or is no longer subject
to a substantial risk of forfeiture; (3) amounts realized from the sale, exchange or other
disposition of stock acquired under a qualified stock option; and (4) other amounts
which receive special tax benefits, such as premiums for group term life insurance (but
only to the extent that the premiums are not includible in the gross income of the
employee) , or contributions made by the Employer (whether or not under a salary
reduction agreement) towards the purchase of any annuity contract described in Code
Section 403(b) (whether or not the contributions are excludible from the gross income of
the employee).
"415 Compensation" shall exclude Employer contributions to a Plan of
deferred compensation which are not includible in the Employee's gross income for the
taxable year in which contributed, other than contributions through a salary reduction
agreement to a cash or deferred plan under Code Section 401(k) or 457, a simplified
employee pension plan under Code Section 402(h)(1)(B), a cafeteria plan under Code
Section 125, a tax deferred annuity under Code Section 403(b) or (for Plan Years
beginning on or after January 1, 2001) elective amounts that are not includible in
income under Code Section 132(0(4). Except as otherwise provided, the provisions of
this paragraph shall be effective for the Plan Year beginning on or after January 1,
1998.
For each "grandfathered Participant" (defined below) the amount of
compensation includible for purposes of determining a Participant's benefits hereunder
shall not be less than the amount of compensation determined under the Plan
immediately prior to the effective date of the OBRA '93 annual compensation limit.
The term "grandfathered Participant" means an eligible employee who
becomes a Participant in the Plan prior to January 1, 1996.
1.8 The term "continuous service" shall mean the period, of employment with
an Employer. An employee shall not be credited with any continuous service for periods
prior the first hour of service with an Employer, notwithstanding any amounts attributable
to such prior service received as a rollover amount in accordance with Article XIX. A
5
"year of continuous service" or "year of service" shall mean a period of twelve (12)
consecutive months during which the employee has completed at least 1,000 hours of
service for an Employer. For purposes of determining eligibility to participate in the Plan,
the period of twelve (12) consecutive months shall commence on the employee's
employment commencement date and each subsequent anniversary of such date. For
purposes of determining the Vested percentage of a Participant's Accrued Benefit, the
period of twelve (12) consecutive months shall be the plan year.
Anything hereinabove to the contrary notwithstanding, continuous service
shall not include:
(a) In the case of a Participant who has incurred a one-year break in
service, years of continuous service before such one-year break in service for
purposes of determining under Section 7.1 the Vested percentage of Accrued
Benefits which accrued subsequent to such break in service, until the employee
has completed a year of continuous service following his return to employment
as required by Section 2.3; and
(b) For purposes of determining a Participant's Accrued Benefit,
continuous service shall not include any periods of service with an Employer
during which the Participant was in an ineligible classification of employees as
provided in Section 1.10.
1.9 The term "Effective Date" shall mean the effective date of this amendment
and restatement, January 1, 2016, except as otherwise herein provided.
1.10 The term "eligible employee" shall mean all employees who (1) commence
employment with an Employer prior to the "Transition Date" (defined below) (or who are
considered employees for purposes of Section 414(n) of the Code), and (2) have
completed one (1) year of continuous service, exclusive of (i) the Village Administrator
of the Village of Morton Grove, (ii) persons employed by an Employer in the capacity of
a firefighter or police officer and (iii) employees whose employment is governed by the
terms of a collective bargaining agreement between employee representatives (within
the meaning of Code Section 7701(a)(46)) and an Employer under which retirement
benefits were the subject of good faith bargaining between the parties, unless such
agreement expressly provides for coverage under this Plan. Employees who attain age
sixty (60) before they first performed an hour of service for an Employer shall be
considered eligible employees for plan years commencing after December 31, 1987 if
they satisfy the requirements for an eligible employee after such date.
Notwithstanding anything to the contrary herein provided, any employee
who commences employment with an Employer on or after the Transition Date shall
participate in IMRF, and shall not be eligible to participate in the Plan.
An eligible employee who commences employment with an Employer prior
to the Transition Date (including a Participant in the Plan) who has at least one (1) hour
of service with an Employer after the Transition Date, may elect to participate in IMRF
6
effective as of the Transition Date, in lieu of participating in the Plan. The election by an
eligible employee to participate in IMRF shall (1) be irrevocable once made, (2) be on
such forms as shall be provided by the Employer, (3) be made not later than ninety (90)
days after the Transition Date, and (4) conform with such other requirements as may be
prescribed by the Employer and IMRF.
A manager who participated in the IRC §457 deferred compensation plan
sponsored by the Village prior to the Transition Date may elect to participate in IMRF or
this Plan, in each case effective as of the Transition Date. A manager electing to
participate in the Plan, effective as of the Transition Date, shall not be credited with any
period of employment prior to the Transition Date for purposes of determining his Years
of Benefit Accrual. The term "manager" means the Assistant Village Administrator and
any Department Head of the Village.
The term "Transition Date" means the date on which the Employers'
election to participate in IMRF was effective, January 1, 2005.
The term "leased employee" means, for plan years beginning after
December 31, 1996, any person (other than an employee of the recipient Employer)
who pursuant to an agreement between the recipient Employer and any other person
("leasing organization") has performed services for the recipient Employer (or for the
recipient Employer and related persons determined in accordance with Code Section
414(n)(6)) on a substantially full time basis for a period of at least one year, and such
services are performed under the primary direction or control by the recipient Employer.
Contributions or benefits provided a leased employee by the leasing organization which
are attributable to services performed for the recipient Employer shall be treated as
provided by the recipient Employer. A leased employee shall not be considered an
employee of the recipient:
(a) if such employee is covered by a money purchase pension plan
providing:
(i)
a non-integrated employer contribution rate of at least 10%
of compensation, as defined in Code Section 415(c)(3), but
including amounts which are contributed by the Employer
pursuant to a salary reduction agreement and which are not
includible in the gross income of the Participant under Code
Sections 125, 402(e)(3), 402(h)(1)(B), 403(b) or 457(b), and
(for Plan Years beginning on and after January 1, 2001)
Code Section 132(0(2).
(ii) immediate participation; and
(iii) full and immediate vesting; and
(b) if leased employees do not constitute more than 20% of the
recipient's non -highly compensated work force.
7
1.11 The term "Employer" as used herein shall mean the Village of Morton
Grove and the Board of Library Directors of the Village of Morton Grove.
1.12 The term "ERISA" shall mean the Employee Retirement Income Security
Act of 1974, as amended.
1.13 The term "Group Contract" shall mean the group annuity contract or
contracts entered into by the Employers with an Insurer for the purpose of paying
benefits under the Plan and for the purpose of the investment of all contributions made
under the Plan. The Group Contract shall be considered a part of the Plan, the terms of
which are herein incorporated by reference.
1.14 The term "Hours of Service" means (1) each hour for which an Employee
is directly or indirectly compensated or entitled to compensation by the Employer for the
performance of duties during the applicable computation period; (2) each hour for
which an Employee is directly or indirectly compensated or entitled to compensation by
the Employer (irrespective of whether the employment relationship has terminated) for
reasons other than performance of duties (such as vacation, holidays, sickness, jury
duty, disability, lay-off, military duty or leave of absence) during the applicable
computation period (these hours will be calculated and credited pursuant to Department
of Labor Regulation 2530.200b-2 which is incorporated herein by reference); (3) each
hour for which back pay is awarded or agreed to by the Employer without regard to
mitigation of damages (these hours will be credited to the Employee for the computation
period or periods to which the award or agreement pertains rather than the computation
period in which the award, agreement or payment is made). These hours will be
credited to the Employee for the computation period or periods to which the award or
agreement pertains rather than the computation period in which the award, agreement
or payment is made. The same Hours of Service shall not be credited both under (1) or
(2), as the case may be, and under (3) above.
Notwithstanding the above, (i) no more than 501 Hours of Service are
required to be credited to an Employee on account of any single continuous period
during which the Employee performs no duties (whether or not such period occurs in a
single computation period); (ii) an hour for which an Employee is directly or indirectly
paid, or entitled to payment, on account of a period during which no duties are
performed is not required to be credited to the Employee if such payment is made or
due under a plan maintained solely for the purpose of complying with applicable
worker's compensation, or unemployment compensation or disability insurance laws;
and (iii) Hours of Service are not required to be credited for a payment which solely
reimburses an Employee for medical or medically related expenses incurred by the
Employee.
For purposes of this Section, a payment shall be deemed to be made by
or due from the Employer regardless of whether such payment is made by or due from
the Employer directly, or indirectly through, among others, a trust fund, or insurer, to
which the Employer contributes or pays premiums and regardless of whether
8
contributions made or due to the trust fund, insurer, or other entity are for the benefit of
particular Employees or are on behalf of a group of Employees in the aggregate.
An Hour of Service must be counted for the purpose of determining a Year
of Service, a year of participation for purposes of accrued benefits, a 1 -Year Break in
Service, and employment commencement date (or reemployment commencement
date). In addition, Hours of Service will be credited for employment with other Affiliated
Employers. The provisions of Department of Labor Regulations 2530.200b -2(b) and (c)
are incorporated herein by reference.
Hours of Service shall include hours during an approved leave of absence
granted by an Employer to an Employee on or after August 5, 1993 pursuant to the
Family and Medical Leave Act, if the Employee returns to work for an Employer at the
end of such leave of absence.
1.15 The term "Insurer" shall mean a legal reserve life insurance company
licensed to do business in the State of Illinois.
1.16 The term "maternity or paternity leave of absence" shall mean an absence
from work from an Employer by reason of: (i) the pregnancy of the employee, (ii) the
birth of a child of the employee, (iii) the placement of a child with the employee in
connection with the Participant's adoption of such child including any trial period prior to
adoption, or (iv) the caring for a child born to or adopted by the employee immediately
following such birth or placement for adoption.
1.17 The term "Mandatory Employee Contribution" shall mean the contribution
to the Plan required by each Participant pursuant to Article IV as a condition of
participation in the Plan.
1.18 The term "Normal Retirement Date" shall mean the first day of the month
coincident with or next following the earlier of: (i) the date on which the Participant has
attained age sixty (60) and completed five (5) Years of Participation, (ii) the date on
which the Participant completes thirty (30) years of continuous service, or (iii) the date
on which the Participant attains age seventy (70).
The term "Early Retirement Date" shall mean the first day of any month
which precedes by not more than ten (10) years the Participant's normal retirement
date.
1.19 The term "One -Year Break In Service" shall mean the failure of an
employee to complete more than 500 hours of service during a plan year.
1.20 The term "Period of Compensation" shall mean the period of twelve (12)
consecutive months ending on April 30 of each year.
1.21 The term "Permanent Disability" shall mean a disability suffered by a
Participant which results from bodily injury or bodily or mental illness (whether or not
occupational), to such an extent that in the opinion of his Employer, based upon
9
competent medical advice, the Participant can no longer engage, in any occupation or
employment on behalf of the Employer for wage or profit for which he is reasonably
fitted by education or experience.
1.22 The term "Plan Year" shall mean the 12 -month plan year of the Plan. The
plan year shall be the calendar year.
1.23 The term "qualified domestic relations order" shall mean a domestic
relations order which creates or recognizes the existence of the right of an alternate
payee (as defined below), or assigns to an alternate payee the right, to receive all or a
portion of the benefits payable with respect to a Participant under the Plan, and which
otherwise satisfies the requirement of a domestic relations order, as set forth below in
this Section. The term "domestic relations order" shall mean a judgment, decree or
order (including a property settlement agreement), made pursuant to a state domestic
relations law, which relates to the provision of child support, alimony, maintenance or
marital property rights to a spouse, child or other dependent of a Participant. A domestic
relations order shall satisfy the foregoing requirements only if such order specifies (i) the
name and last known mailing address of the Participant and each alternate payee
(unless the Participant's Employer shall otherwise have knowledge or notice of such
mailing addresses), (ii) the amount or percentage of the Participant's benefits to be paid
to each alternate payee (and where required, the manner of determining the amount or
percentage of benefits), (iii) the number of payments which are required to be .made . to
the alternate payee, and (iv) each plan to which such order applies. A domestic relations
order shall not satisfy the foregoing requirements if such order (A) requires the Plan to
provide any type, form or option of benefit not otherwise provided under the Plan, (B)
requires the Plan to provide increased benefits (determined on the basis of actuarial
value), or (C) requires the payment of benefits to an alternate payee which are required
to be paid to another alternate payee by a prior qualified domestic relations order.
1.24 The term "alternate payee" shall mean an individual who is entitled to
receive all or a portion of a Participant's benefits by virtue of a qualified domestic
relations order.
1.25 The term "Plan Administrator" or "Administrator" shall mean the
Employers.
1.26 The term "Spouse" shall mean a person to whom a Participant is married
and has been married for at least one (1) year on the Participant's "annuity starting
date" (as defined below). Except as may be otherwise herein provided, a Participant
who is not married for at least one (1) year on his annuity starting date shall be
considered an unmarried Participant under the Plan. To the extent provided under a
qualified domestic relations order, a former spouse shall be treated as a spouse if (and
to the extent) provided for in such order. Individuals who have entered into a registered
domestic partnership, civil union or other similar formal relationship recognized under
state or local law that is not denominated as a marriage shall not be treated as
"spouses" for any purpose of this Plan.
10
1.27 The term "termination of employment" means termination of employment
with all Employers.
1.28 The term "Year of Benefit Accrual" shall mean a plan year in which the
Participant shall be credited with a year of continuous service; provided, however,
employees who were excluded from eligibility in the Plan because they had attained age
sixty (60) before they first performed an hour of service for an Employer shall not be
credited with a Year of Benefit Accrual for any continuous service prior to January 1,
1988. A Participant employed in an ineligible employment classification shall not be
credited with any Years of Benefit Accrual for periods of employment in such ineligible
classification. A Participant who elects to participate in IMRF while employed by the
Employers shall not be credited with any Years of Benefit Accrual for periods of
employment with an Employer on or after the Transition Date.
1.29 The term "Year of Participation" shall mean any Plan Year in which the
employee is a Participant in the Plan and is credited with a year of continuous service.
1.30 The term "Vested" shall mean the portion of a Participant's Accrued
Benefit that is non -forfeitable, as determined in accordance with Article ViI. The portion
of a Participant's Accrued Benefit which is not Vested shall be considered a "Forfeiture".
ARTICLE II.
Employees Entitled to Participate
2.1 Entry Date. No employee commencing employment with an Employer on
or after the Transition Date shall be eligible to participate in the Plan. Each eligible
employee shall become a Participant hereunder on the first day of the month next
following the date on which he becomes an eligible employee. An eligible employee
who is a Participant in the Plan as of the Effective Date shall continue to participate in
the Plan.
2.2 Leave of Absence. An approved leave of absence means any authorized
leave of . absence as a result of illness, disability (except Permanent Disability), or
national emergency requiring governmental or military service or entering the Armed
Forces of the United States at any time through the operation of a compulsory military
service law subsequent to the execution of this Agreement. Approved leaves of
absences shall be granted by the Employers in a uniform and non-discriminatory
manner. If the employee fails to return to active service with an Employer upon
termination of his leave of absence (including the period in which his, reemployment
rights are guaranteed by law after discharge from the Armed Forces) after being offered
an opportunity to do so, then and in that event such employee shall be deemed to have
terminated his employment as of the date of the termination of his leave of absence.
2.3 Break in Service. A Participant who incurs a one-year break in service
subsequent to the Effective Date and who later reenters the service of an Employer
must complete one (1) year of continuous service following the date of his
11
reemployment before he can again become a Participant under this Plan, at which time
he shall be considered a Participant retroactive to the date of his reemployment.
2.4 Eligibility Determined by the Employers. In the event any questions arise
as to the eligibility of an employee to participate in the Plan, such questions shall be
decided by his Employer.
ARTICLE 111.
Employer Contributions
3.1 Annual Contribution. The amount of an Employer's annual contribution to
the Plan shall, when added to the Mandatory Employee Contributions of its employees
who are Participants, meet or exceed the minimum funding standards of ERISA and the
Code (as may be applicable) for its employees who are Participants in the Plan. The
amount and timing of each Employer's contribution to the Plan shall be determined
based upon actuarial valuations and recommendations as to the amounts required to
fund benefits under the Plan. Any dividends declared under the Group Contract and any
Forfeitures shall be applied to reduce future Employer contributions.
A portion of the Plan assets attributable to Employer contributions (but not
more than the original amount of those contributions) may be returned to an Employer if
the Employer contributions are made because of a mistake of fact. The amount involved
must be returned to the Employer within one (1) year of the date the Employer
contributions are made by mistake or fact. Except as provided in Section 16.2, the
assets of the Plan shall never be used for the benefit of the Employer and are held for
the exclusive purpose of providing benefits to Participants and their beneficiaries and for
paying reasonable expenses of administering the Plan. All Employer and Employee
contributions under the Plan shall be forwarded by the Administrator to the Insurer for
investment in the Group Contract.
3.2 Actuarial Assumptions. The actuarial assumptions upon which this Plan
shall be governed are set forth in Section 1.2. The Plan's actuary shall have the right,
from time to time, to make reasonable changes in the actuarial assumptions as he
deems appropriate. Any change in the actuarial assumptions shall constitute an
amendment to the Plan.
ARTICLE IV.
Mandatory Employee Contributions
4.1 Mandatory Employee Contributions. Each employee who participates in
the Plan shall be required, as a condition of participation in the Plan, to make Mandatory
Employee Contributions to the Pian in the amount of two percent (2%) of their
compensation, which shall be payable after commencing participation in the Plan.
Mandatory Employee Contributions shall be made by payroll deduction or other
acceptable method administered by the Employers. Commencing as of February 1,
1991, Mandatory Employee Contributions shall be treated as deductible (pre-tax) "pick
up" contributions under Section 414(h) of the Code.
12
ARTICLE V.
Retirement Benefits
5.1 Monthly Retirement Benefit. Subject to the limitations and adjustments
hereinafter set forth, each Participant shall be entitled to a monthly retirement income
commencing at their normal retirement date determined by the formulae set forth in
Section 5.3.
5.2 Adjustment to Current Compensation. If on any Anniversary Date a
Participant shall be receiving compensation which has been increased or decreased,
the Plan Administrator shall take appropriate steps to adjust the Participant's pension
accordingly; provided, however, (1) no adjustment shall me made unless the increase or
decrease in compensation would produce a difference of at least ten dollars ($10.00) in
a Participant's anticipated monthly normal retirement benefit, and (ii) no decrease in
compensation shall be recognized unless (and until the amount of) such decrease shall
continue for a period of two (2) plan years. All benefits shall be calculated to the nearest
dollars.
5.3 Normal Retirement Benefit. The amount of monthly normal retirement
benefit for any Participant at his normal retirement date shall be equal to (i) for a
Participant whose termination of employment occurs prior to May 1, 1991, one and two-
thirds percent (1-2/3%) of the Participant's Average Monthly Compensation multiplied
by his total Years of Benefit Accrual, and (11) for a Participant whose termination of
employment occurs on or after May 1, 1991, the sum of (A) one and two-thirds percent
(1-2/3%) of the Participant's Average Monthly Compensation multiplied by his total
Years of Benefit Accrual not in excess of fifteen (15) Years of Benefit Accrual, plus, (B)
two percent (2%) of the Participant's Average Monthly Compensation multiplied by his
total Years of Benefit Accrual in excess of fifteen (15) Years of Benefit Accrual;
provided, however, (x) except in the case of a Participant who has at least thirty (30)
Years of Benefit Accrual as of February 11, 1991, in no event shall a Participant's
monthly normal retirement benefit exceed seventy-five percent (75%) of his Average
Monthly Compensation, and (y) in the case of a Participant who has at least thirty (30)
Years of Benefit Accrual as of February 11, 1991, in no event shall such Participant's
monthly normal retirement benefit exceed eighty-five percent (85%) of his Average
Monthly Compensation.
5.4 Early Retirement Benefit. A Participant who has not less than ten (10)
years of service and who remains employed on his early retirement date may, upon the
termination of his employment, elect to receive the payment of his Accrued Benefit
commencing on or after an early retirement date specified by the Participant. In the
event the payment of a Participant's Accrued Benefit commences after his early
retirement date and prior to his normal retirement date, the Participant's Accrued Benefit
shall be reduced by one-half percent (.5%) for each month by which the
commencement of payment precedes his normal retirement date.
5.5 Continued Employment. A Participant may continue his employment
beyond his normal retirement date, in which event no retirement benefit will be paid to
13
the Participant until his actual termination of employment, except as otherwise provided
in Article XI. At the close of each plan year prior to his actual retirement, a Participant
shall be entitled to a monthly normal retirement benefit equal to the greater of (1) the
Actuarial Equivalent of the monthly retirement benefit the Participant was entitled to
receive at the end of the prior plan year, or (ii) the Accrued Benefit determined as of the
end of the plan year.
5.6 Disability Benefit. If a Participant suffers a Permanent Disability prior to
his normal retirement date, he shall be entitled to receive his Accrued Benefit calculated
as of the date of the occurrence of the disability. The disability benefit payable to a
Participant pursuant to this Section 5.6 shall be paid commencing upon the Participant
reaching the date which would have been his normal retirement date if he remained
employed. Notwithstanding anything herein to the contrary, if the "Worker
Compensation Payments" (as defined below) paid to a Participant during the period of
his Permanent Disability are less than the Income Threshold (defined below), then a
temporary life -only annuity (the "Disability Pension") shall be payable to the disabled
Participant for the period commencing on the first day of the month following the
Participant's termination of employment and terminating on the first to occur of (i) the
Participant's death, or (ii) the Participant reaching his normal retirement date. The
Disability Pension shall cease during any period that the Worker Compensation
Payments equal or exceed the Income Threshold. The amount of the Disability Pension
payable to a disabled Participant shall be equal to the difference between the Worker
Compensation Payments payable to the disabled Participant and the Income Threshold.
If the Worker Compensation Payments are paid to the disabled Participant other than
on a monthly basis, then such payments received during each calendar year shall be
assumed to have been received in equal monthly payments. Notwithstanding the
foregoing, the Disability Pension paid to a disabled Participant during the period of his
disability shall not exceed the Participant's Accrued Benefit, determined as of the date
the payment of the Disability Pension commences.
The term "Income Threshold" means the quotient of fifty percent (50%) of the
Participant's compensation at his termination of employment divided by twelve (12). In
lieu of the payment of a Disability Pension, upon the occurrence of a Permanent
Disability prior to his normal retirement date, a Participant shall be entitled to elect to
receive a lump sum payment of his Mandatory Employee Contributions together with
interest thereon at the rate of five percent (5%) per annum compounded annually, from
the date of contribution to the Participant's termination of employment. This interest
rate shall be periodically changed according to Section 411(c)(2)(D) of the Code and the
Regulations thereunder.
The term "Worker Compensation Payments" shall mean the aggregate monthly
disability benefits the Participant received from any of the following sources:
(a) Primary Social Security benefits under the Federal Social Security
Act or similar statute of any state or county; or
14
(b) Family Social Security benefits under the Federal Social Security
Act or similar statute of any state or county; or
(c) Any workers' compensation act; or
(d) Any employer liability law; or
(e) Any occupational disease law; or
(f) Any state or federally sponsored disability or retirement plan; or
(g) Any employer or group policyholder sponsored salary continuation
plan or sick leave pay plan; or
(h) Any employer or policyholder sponsored long-term disability plan
under a group policy; or
(i)
(i)
Any Veteran's Administration disability plan; or
Any disability benefit payable under any no fault insurance plan;
provided, however, that the payment received from any such source, exclusive of
retirement benefits, are payable as a result of the total disability for which a benefit is
payable under this Plan.
Either upon its own initiative or upon the request of a Participant or a member of
his family, an Employer shall promptly make a determination as to whether or not a
Participant has suffered a Permanent Disability. As a condition of receiving a Disability
Pension, a Participant shall be required to provide adequate proof of total disability,
submit to an independent medical examination and, upon the request of the Employer,
periodically be re-examined by an independent physician. If the Employer should find
that a Participant who is receiving a Disability Pension is, at any time prior to his normal
retirement date, no longer Permanently Disabled, or the Participant fails to cooperate in
verifying his disability, the Employer may direct that the Disability Pension be
discontinued. Any disabled Participant who recovers from his Permanent Disability prior
to his normal retirement date and is not subsequently reemployed by an Employer at
the termination of the Permanent Disability shall be entitled to receive a retirement
benefit pursuant to the provisions of Article VII based on his Years of Benefit Accrual
and Vesting as of the date of his disability retirement; provided, however, such
retirement benefit shall be reduced by the Actuarial Equivalent of the Disability Pension
which the Participant has received. If a Participant is reemployed by an Employer, the
retirement benefit payable upon subsequent retirement shall be based upon his Years
of Benefit Accrual at his disability retirement plus his Years of Benefit Accrual
subsequent to his date of reemployment; provided, however such benefits shall be
reduced by the Actuarial Equivalent of the Disability Pension received by the Participant
prior to his reemployment.
1FS
Notwithstanding the foregoing, a Participant who elects to participate in 1MRF
after the Transition Date shall not be entitled to a Disability Pension unless such
Participant suffers a Permanent Disability prior to the Transition Date.
5.7 Return of Mandatory Employee Contributions. If a Participant's
termination of employment shall not occur because of death or retirement after reaching
normal retirement date or early retirement date, then in lieu of receiving his Vested
Accrued Benefit, pursuant to a written election delivered to his Employer, a Participant
may elect to receive a lump sum payment of his Mandatory Employee Contributions
together with interest thereon at the rate of five per cent (5%) per annum compounded
annually, from the date of contribution to the Participant's termination of employment.
This interest rate shall be changed according to Section 411(c) (2) (D) of the Code and
the Regulations thereunder.
5.8 Rollover Accounts . In addition to the benefits provided for under Sections
5.2, 5.4, 5.5, 5.6 and 5.7, a Participant's Accrued Benefit shall be increased by any
amounts in a Rollover Account, as provided in Article XIX below.
5.9 Limitation on Benefits. Notwithstanding anything to the contrary herein
provided, a Participant's normal retirement benefit shall be subject to the limitations
provided in Article XX below.
ARTICLE VI.
Pre -Retirement Death Benefit
6.1 Pre -Retirement Death Benefit. In the event of the death of a Participant
prior to his termination of employment, such Participant's beneficiary shall be entitled to
receive a monthly survivor's benefit (a "Survivor's Annuity") equal to the amount of the
annuity which would have been payable if the Participant (i) had incurred a termination
of employment as of the date of his death, (ii) was fully Vested in his Accrued Benefit
regardless of the number of his years of continuous service, (iii) received his Accrued
Benefit, payable as of the date of his death, in the form of a 50% joint and survivor
annuity in an amount which is the Actuarial Equivalent of his normal form of retirement
benefit payable at his normal retirement date, and (iv) died immediately thereafter.
Payment of the Survivor's Annuity shall commence on the month following the
Participant's death and shall continue for the life of the Participant's beneficiary. For
purposes of the Survivor's Annuity, a Participant's beneficiary shall be determined in
accordance with Section 11.3. A Participant's beneficiary may elect in writing to receive
payment of the Participant's death benefit in any optional form of payment described in
Section 11.1(c). Any such optional form of payment shall be the Actuarial Equivalent of
the Survivor's Annuity.
ARTICLE VII.
Termination Benefits
7.1 Determination of Benefits Upon Termination of Employment. If a
Participant terminates his employment with an Employer prior to his early retirement
16
date or normal retirement date for any reason other than death or Permanent Disability,
he shall be entitled to an amount equal to his Accrued Benefit multiplied by the
percentage set forth in the vesting schedule below:
Number of Years of Percentage of Participant's
Participation Accrued Benefit
Less than 1 None
1 but Tess than 2 10%
2 but less than 3 20%
3 but Tess than 4 30%
4 but less than 5 40%
5 but less than 6 50%
6 but less .than 7 60%
7 but less than 8 70%
8 but Tess than 9 80%
9 but less than 10 90%
10 or more 100%
In all events, a Participant shall be fully Vested upon attainment of his early
retirement date or normal retirement date.
7.2 Service Upon Termination. Where, because of termination of employment,
a Participant receives a distribution of:
(a) the present value of his entire Vested Accrued Benefit if the
distribution shall not exceed Five Thousand Dollars ($5,000); or
(b) the present value of his entire Vested Accrued Benefit which he
shall elect to receive;
years of continuous service shall not, upon reemployment be taken into account under
Section 1 above in determining the Participant's Years of Benefit Accrual and the
Vested percentage of Accrued Benefits which accrued before such distribution unless
the Participant shall repay the entire amount of such distribution with interest at five
percent (5%) per annum compounded annually within five (5) years after the date of
receipt of such distribution.
7.3 Amendment of Vesting Schedule. In the event the vesting schedule
provided in Section 7.1 above is amended, any Participant who, as of the effective date
of such amendment, has three (3) or more years of continuous service, may, by filing a
written election with the Plan Administrator on or before sixty (60) days subsequent to
the later of: (1) the date such amendment is adopted, (ii) receipt of written notice of such
amendment, or (iii) the date on which the Participant is given written notice of the
amendment, continue his vesting under the vesting schedule in effect prior to such
amendment, in lieu of the vesting schedule as amended.
17
7.4 Forfeitures. Except as otherwise provided in this Article, all Accrued
Benefits which are not Vested shall, following five (5) consecutive one-year breaks in
service, be forfeited and applied as provided in Article X.
ARTICLE VIII.
Denial of Claims and Appeal Procedure
8.1 Claims Procedure. Claims for benefits under the Plan may be filed with
the Administrator on forms supplied by the Employer. Written notice of the disposition
of a claim shall be furnished to the claimant within 90 days after the application is filed.
In the event the claim is denied, the reasons for the denial shall be specifically set forth
in the notice in language calculated to be understood by the claimant, pertinent
provisions of the Plan shall be cited, and, where appropriate, an explanation as to how
the claimant can perfect the claim will be provided. In addition, the claimant shall be
furnished with an explanation of the Plan's claims review procedure.
8.2 Claims Review Procedure. Any Employee, former Employee, or
Beneficiary of either, who has been denied a benefit by a decision of the Administrator
pursuant to Section 8.2 shall be entitled to request the Administrator to give further
consideration to his claim by filing with the Administrator (on a form which may be
obtained from the Administrator) a request for a hearing. Such request, together with a
written statement of the reasons why the claimant believes his claim should be allowed,
shall be filed with the Administrator no later than 60 days after the date notice of the
benefit denial is delivered or mailed to the claimant. if the claimant appeals the benefit
denial within such 60 -day period, the Administrator shall then conduct a hearing within
the next 60 days (180 days for a claim regarding Permanent Disability), at which the
claimant may be represented by an attorney or any other representative of his choosing
and at which the claimant shall have an opportunity to submit written and oral evidence
and arguments in support of his claim. At the hearing (or prior thereto upon 5 business
days written notice to the Administrator) the claimant or his representative shall have an
opportunity to review all documents in the possession of the Administrator which are
pertinent to the claim at issue and its disallowance. Either the claimant or the
Administrator may cause a court reporter to attend the hearing and record the
proceedings. In such event, a complete written transcript of the proceedings shall be
furnished to both parties by the court reporter. The .full expense of any such court
reporter and such transcripts shall be borne by the party causing the court reporter to
attend the hearing. A final decision as to the allowance of the claim shall be made by
the Administrator within 60 days of receipt of the appeal (unless there has been an
extension of 60 days due to special circumstances, provided the delay and the special
circumstances occasioning it are communicated to the claimant within the 60 day
period). Such communication shall be written in a manner calculated to be understood
by the claimant and shall include specific reasons for the decision and specific
references to the pertinent Plan provisions on which the decision is based.
18
ARTICLE IX.
Valuation of the Fund
The net worth of the Group Contract shall be determined by its valuation at fair
market value as of each Anniversary Date (hereinafter sometimes referred to as the
"valuation date"). The valuation date shall be the same date used for computing the
minimum funding costs of the Plan, regardless of whether a computation is made for the
pian year.
ARTICLE X.
Forfeitures
As of each Anniversary Date, the amount of Forfeitures attributable to the
employees of each Employer which occur during the plan year then ended, as
determined under Article VH, shall be used to reduce the next succeeding Employer
contributions to the Plan of the Employer whose employees gave rise to the Forfeiture
by their termination of employment.
ARTICLE XI.
Payment of Benefits
11.1 Normal and Optional Forms for Payment of Retirement Benefits.
(a) The normal form for the payment of retirement benefits shall be a
joint and survivor annuity for a married Participant and a single life annuity for an
unmarried Participant. A Participant may elect an optional form for the payment of
benefits in the form of either (i) a lump sum distribution, or (ii) an annuity other
than the type which is the normal form for payment of benefits.
(b) The joint and survivor annuity which is the normal form of benefit
for a married Participant shall be an annuity payable for the life of the Participant
with a survivor annuity for the life of his spouse in an amount equal to fifty
percent (50%) of the amount of the annuity payable during the joint lives of the
Participant and his spouse. A joint and survivor annuity shall be payable pursuant
to a single premium non -transferable annuity contract which shall be purchased
from an Insurer selected by the Plan Administrator. Such annuity contract shall
be delivered to the Participant and shall, by its terms, provide that payment
thereunder shall commence not later than the date provided in Section 11.2 for
delivery of such annuity contract, and that payments shall be payable in
substantially equal installments not less frequently than annually for the joint life
and survivor life of such Participant and his spouse.
(c) In addition to an annuity which is the normal form for the payment
of retirement benefits, a Participant may elect to receive his retirement benefits
paid in the form of (i) a single life annuity for the life of the Participant only, (ii) a
joint and survivor annuity providing for equal monthly payments during the
Participant's life and a survivor annuity for the life of his beneficiary in an amount
equal to one hundred per cent (100%), seventy-five percent (75%) or fifty per
14
cent (50%) of the amount of the annuity payable during the joint lives of the
Participant and his beneficiary, (iii) an annuity providing for monthly payments for
the Participant's life and for a period of five (5) or ten (10) years certain, or (iv) a
lump sum payment. All optional forms of benefit payment shall be the Actuarial
Equivalent of the normal form of payment.
Benefits paid in the form of an annuity other than a joint and survivor annuity
shall be payable pursuant to a single premium non -transferable annuity contract which
shall be purchased from an Insurer selected by the Plan Administrator. Such annuity
contract shall be delivered to the Participant and shall, by its terms, provide that
payment thereunder shall commence not later than the date provided in Section 11.9 for
delivery of such annuity contract and that payments shall not exceed the life expectancy
of the Participant or the Participant and his beneficiary, as the case may be, on the date
payments commence. The joint annuitant which a Participant may select shall, with the
exception of the Participant's spouse, be limited to a person who is not more than thirty
(30) years younger than the Participant. Anything to the contrary notwithstanding, if a
Participant shall terminate employment after having attained age sixty-five (65), the Plan
Administrator shall not permit the payment of benefits in the form of a joint and survivor
annuity other than the normal form if, based on the Participant's life expectancy, Tess
than one-half (1/2) of the, benefits to which the Participant is entitled will be payable to
the Participant.
11.2 Time of Payment of Benefits. A Participant whose termination of
employment occurs for reasons other than death, Permanent Disability or retirement
after reaching his normal retirement date or early retirement date shall be entitled to
receive the payment of his monthly retirement benefit commencing in the month
following his termination of employment. Subject to the provisions of Section 11.9, a
Participant's monthly retirement benefit shaft be paid commencing no later than sixty
(60) days after the last to occur of (i) the close of the plan year in which a Participant
terminates employment, or (11) the close of the plan year in which the Participant attains
the earlier of age sixty-five (65) or normal retirement date.
11.3 Designation of Beneficiary. Each Participant shall have the right to
designate a beneficiary or beneficiaries who shall receive his benefits under the Plan in
the event of his death, such designation of beneficiary to be filed, in writing, with his
Employer. Beneficiaries may be designated contingently or successively and any
designation may be changed or revoked by the filing of such revocation or change of
beneficiary in writing with the Employer. If a deceased Participant fails to designate a
beneficiary or if the beneficiary designated by the deceased Participant dies before him
or before complete distribution of the Participant's benefits under the Plan, the Plan
Administrator shall direct distribution of the Participant's benefits in the following order of
priority:
(a) to the deceased Participant's spouse (if any);
(b) to the legal representative or representatives (if any) of the estate of
the last to die of the Participant and his beneficiary; or
20
(c) to or for the benefit of any one or more of the deceased
Participant's relatives by blood, adoption or marriage.
11.4 Participant Information. Each Participant must file with his Employer, in
writing, his post office address, the post office address of each of his beneficiaries, and
each change of post office address. Any communication, statement or notice addressed
to a Participant or beneficiary with postage prepaid at his last post office address filed
with the Employer, or if no address is filed with the Employer, then at his last post office
address as shown on the Employer's records, will be binding on the Participant and his
beneficiary for all purposes of the Plan. The Employer shall not be required to search for
or locate a Participant or beneficiary. If the Plan Administrator notifies a Participant or
beneficiary that he is entitled to a distribution and also notifies him of the provisions of
this Section, and the Participant or beneficiary fails to claim his benefits under the Plan
and make his whereabouts known to the Employer within two (2) years after the
notification, the benefits of the Participant and beneficiary will be disposed of as follows:
(a) If the whereabouts of the Participant is unknown, but the
whereabouts of a Participant's beneficiary then is known to the Employer,
distribution will be made to the beneficiary.
(b) if the whereabouts of the Participant and his beneficiary then is
unknown to the Employer, but the whereabouts of one or more relatives by blood,
adoption or marriage of the Participant is known to the Employer, the Plan
Administrator may cause distribution of the Participant's benefits to be made to
any one or more of such relatives and in such proportions as the Trustees
determine.
11.5 Distribution for Minor or Disabled Beneficiary . When a Participant or the
beneficiary of a Participant is under legal disability, or in the Plan Administrator's opinion
is in any way incapacitated so as to be unable to manage his financial affairs, the Plan
Administrator may direct payments or distributions to his legal representative, or to a
relative or friend of such person for his benefit, or the Plan Administrator may direct
payments or distributions for the benefit of the Participant or beneficiary in any way the
Plan Administrator determines to be in such person's best interests.
11.6 Indemnification of Plan Administrator. The Administrator shall determine
the identity of the distributees, and in so doing, may act upon such information as, on
reasonable inquiry they may deem reliable with respect to heirship, relationship,
survivorship, or any other fact relative to the distributee; and the Administrator shall be
indemnified and saved harmless with respect to all payments required to be made
hereunder (including but not limited to any payments made to a beneficiary or relative of
a missing Participant pursuant to Section 11.4), if made in good faith and without actual
notice or knowledge of the changed condition or status of any person receiving
payments. The Administrator may rely on any list or notice furnished by an Employer as
to the facts, the occurrence of any events, or the existence of any situation, and shall
not be bound to inquire as to the basis of any such decision, list, or notice, and shall be
indemnified and saved harmless by the Employer for any action taken or suffered to be
taken by him in reliance thereon.
11.7 Proper Payee of Benefits in Dispute. In the event any question or dispute
shall arise as to the proper person or persons to whom any payment shall be made, the
Administrator may withhold such payment until a determination of such question or
dispute shall have been made, or until the Administrator shall have been adequately
indemnified against loss to his satisfaction.
if the Employer or Administrator shall receive a domestic relations order relating
to any Participant, the Administrator shall (a) promptly notify the Participant and each
alternate payee (or his designated representative) of the receipt of such order and the
procedure for determining the "qualified" status of such order, and (b) within a
reasonable period of time determine whether such order is "qualified" and notify the
Participant and each alternate payee (or his designated representative) of such
determination.
11.8 Required Proof for Administrator. The Administrator may require such
proof of death or evidence of the right of such person to receive payment of a deceased
Participant or former Participant's benefits as the Administrator may deem desirable.
11.9 Distribution Requirements.
(a) General Rules.
(1) Precedence and Effective Date. The requirements of this
Section 11.9 shall apply to any distribution of a Participant's interest and
will take precedence over any inconsistent provisions of this plan. Unless
otherwise specified, the provisions of this Section 11.9 apply to calendar
years beginning after December 31, 2002.
(2) Requirements of Regulations Incorporated. All distributions
required under this Section 11.9 shall be determined and made in
accordance with § 401(a)(9) of the Internal Revenue Code, including the
incidental death benefit requirement in § 401(a)(9)(G), and the Income Tax
Regulations thereunder.
(3) Limits on Distribution Periods. As of the first distribution
calendar year, distributions to a Participant, if not made in a single sum,
may only be made over one of the following periods:
(i) the life of the Participant;
(ii) the joint lives of the Participant and a designated
beneficiary;
(iii) a period certain not extending beyond the life
expectancy of the Participant; or
22
(iv) a period certain not extending beyond the joint life
and last survivor expectancy of the Participant and a designated
beneficiary.
(4) Time and Manner of Distribution.
(i) Required Beginning Date. The Participant's entire
interest will be distributed, or begin to be distributed, no later than
the Participant's required beginning date.
(ii) Death of Participant Before Distributions Begin. If the
Participant dies before distributions begin, the Participant's entire
interest will be distributed, or begin to be distributed, no later than
as follows:
A. if the Participant's surviving spouse is the
Participant's sole designated beneficiary, then distributions to
the surviving spouse will begin by December 31 of the
calendar year immediately following the calendar year in
which the Participant died, or by December 31 of the
calendar year in which the Participant would have attained
age 70-1/2, if later.
B. If the Participant's surviving spouse is not the
Participant's sole designated beneficiary, then distributions to
the designated beneficiary will begin by December 31 of the
calendar year immediately following the calendar year in
which the Participant died.
C. If there is no designated beneficiary as of
September 30 of the year following the year of the
Participant's death, the Participant's entire interest will be
distributed by December 31 of the calendar year containing
the fifth anniversary of the Participant's death.
D. If the Participant's surviving spouse is the
Participant's sole designated beneficiary and the surviving
spouse dies after the Participant but before distributions to
the surviving spouse are required to begin, this Section
11.9(b)(2) other than Section 11.9(b)(2)(i) will apply as if the
surviving spouse were the Participant.
For purposes of this Section 11.9(4)(ii) and Section (7) unless Section
11.9(b)(D) applies, distributions are considered to begin on the
Participant's required beginning date. if Section 11.9(b)(D) applies,
distributions are considered to begin on the date distributions are required
to begin to the surviving spouse under Section 11.9(b)(i). If distributions
under an annuity meeting the requirements of this Section 11.9
commence to the Participant before the Participant's required beginning
date (or to the Participant's surviving spouse before the date distributions
are required to begin to the surviving spouse under Section 11.9(b)(i)), the
date distributions are considered to begin is the date distributions actually
commence.
(iii) Forms of Distribution. Unless the Participant's
interest is distributed in the form of an annuity purchased from an
insurance company or in a single sum on or before the required
beginning date, as of the first distribution calendar year distributions
will be made in accordance with the requirements of § 401(a)(9) of
the Code and § 1.401(a)(9) of the regulations. Any part of the
Participant's interest which is in the form of an individual account
described in § 414(k) of the Code will be distributed in a manner
satisfying the requirements of § 401(a)(9) of the Code and
§ 1.401(a)(9) of the regulations that apply to individual accounts.
(5)
Determination of Amount to be Distributed Each Year.
(i) Genera! Annuity Requirements. If the Participant's
interest is to be paid in the form of annuity distributions under the
plan, payments under the annuity shall satisfy the following
requirements:
A. the annuity distributions will be paid in periodic
payments made at uniform intervals not longer than one
year;
B. the distribution period will be over a life (or
lives) or over a period certain not longer than the period
described in Section 11.9(d) or (e) below;
C. once payments have begun over a period, the
period will be changed only in accordance with Section
11.9(0 of this Section 11.9;
D. payments will be nonincreasing or increase
only as follows:
1. by an annual percentage increase that
does not exceed the percentage increase in an
eligible cost -of -living index for a 12 -month period
ending in the year during which the increase occurs or
a prior year;
2. by a percentage increase that occurs at
specified times and does not exceed the cumulative
total of annual percentage increases in an eligible
cost -of -living index since the annuity starting date, or
if later, the date of the most recent percentage
increase;
3. by a constant percentage of less than 5
percent per year, applied not Tess frequently than
annually;
4. as a result of dividend or other
payments that result from actuarial gains provided:
a. A. actuarial gain is measured
not less frequently than annually.
b. the resulting dividend or other
payments are either paid no later than the year
following the year for which the actuarial
experience is measured or paid in the same
form as the payment of the annuity over the
remaining period of the annuity (beginning no
later than the year following the year for which
the actuarial experience is measured).
c. the actuarial gain taken into
account is limited to actuarial gain from
investment experience.
d. the assumed interest rate used to
calculate such actuarial gains is not Tess than 3
percent, and
e. the annuity payments are not
increased by a constant percentage as
described in (3) of this Section 11.9(c)(iv).
5. to the extent of the reduction in the
amount of the Participant's payments to provide for a
survivor benefit, but only if there is no longer a
survivor benefit because the beneficiary whose life
was being used to determine the distribution period
described in Section 11.9(c)(4) dies or is no longer the
Participant's beneficiary pursuant to a qualified
domestic relations order within the meaning of
§ 414(p) of the Code;
6. to provide a final payment upon the
Participant's death not greater than the excess of the
actuarial present value of the Participant's accrued
benefit (within the meaning of § 411(a)(7) of the Code)
calculated as of the annuity starting date using the
applicable interest rate defined in Section 1.2 of the
Plan and the applicable mortality table defined in
Section 1.2 of the Plan (or, if greater, the total amount
of employee contributions) over the total of payments
before the Participant's death;
7. to allow a beneficiary to convert the
survivor portion of a joint and survivor annuity into a
single slam distribution upon the Participant's death; or
8. to pay increased benefits that result
from a plan amendment.
(ii) Amount Required to be Distributed by Required
Beginning Date and Later Payment Intervals. The amount that
must be distributed on or before the Participant's required
beginning date (or, if the Participant dies before distributions begin,
the date distributions are required to begin under Section
11.9(b)(2)(i) or (ii) is the payment that is required for one payment
interval. The second payment need not be made until the end of
the next payment interval even if that payment interval ends in the
next calendar year. Ali of the Participant's benefit accruals as of the
last day of the first distribution calendar year will be included in the
calculation of the amount of the annuity payments for payment
intervals ending on or after the Participant's required beginning
date.
(iii) Additional Accruals After First Distribution Calendar
Year. Any additional benefits accruing to the Participant in a
calendar year after the first distribution calendar year will be
distributed beginning with the first payment interval ending in the
calendar year immediately following the calendar year in which
such benefit accrues.
(6) Requirements for Annuity Distributions That Commence
During Participant's Lifetime.
(i) Joint Life Annuities Where the Beneficiary is Not the
Participant's Spouse. If the Participant's interest is being distributed
in the form of a joint and survivor annuity for the joint lives of the
Participant and a nonspouse beneficiary, annuity payments to be
made on or after the Participant's required beginning date to the
designated beneficiary after the Participant's death must not at any
time exceed the applicable percentage of the annuity payment for
such period that would have been payable to the Participant, using
the table set forth in § 1.401(a)(9)-6. Q&A 2(c)(2), in the manner
described in Q&A 2(c)(1), of the regulations, to determine the
applicable percentage. If the form of distribution combines a joint
and survivor annuity for the joint lives of the Participant and a
nonspouse beneficiary and a period certain annuity, the
requirement in the preceding sentence will apply to annuity
payments to be made to the designated beneficiary after the
expiration of the period certain.
(ii) Period Certain Annuities. Unless the Participant's
spouse is the sole designated beneficiary and the form of
distribution is a period certain and no life annuity, the period certain
for an annuity distribution commencing during the Participant's
lifetime may not exceed the applicable distribution period for the
Participant under the Uniform Lifetime Table set forth in
§ 1.401(a)(9)-9. Q&A -2, of the regulations for the calendar year
that contains the annuity starting date. If the annuity starting date
precedes the year in which the Participant reaches age 70, the
applicable distribution period for the Participant is the distribution
period for age 70 under the Uniform Lifetime Table set forth in
§ 1.401(a)(9)-9, Q&A, of the regulations plus the excess of 70 over
the age of the Participant as of the Participant's birthday in the year
that contains the annuity starting date. If the Participant's spouse is
the Participant's sole designated beneficiary and the form of
distribution is a period certain and no life annuity, the period certain
may not exceed the longer of the Participant's applicable
distribution period, as determined under this section (d)2 or the joint
life and last survivor expectancy of the Participant and the
Participant's spouse as determined under the Joint and Last
Survivor Table set forth in § 1.401(a)(9)-9, Q&A -3, of the
regulations, using the Participant's and spouse's attained ages as
of the Participant's and spouse's birthdays in the calendar year that
contains the annuity starting date.
(7) Requirements for Minimum Distributions After the
Participant's Death.
(i) Death After Distributions Begin. If the Participant dies
after distribution of his or her interest begins in the form of an
annuity meeting the requirements of this article, the remaining
portion of the Participant's interest will continue to be distributed
over the remaining period over which distributions commenced.
(ii) Death Before Distributions Begin.
A. Participant Survived by Designated Beneficiary.
if the Participant dies before the date distribution of his or
her interest begins and there is a designated beneficiary, the
Participant's entire interest will be distributed, beginning no
later than the time described in section 11/9(b)2(i) or (li), over
the life of the designated beneficiary or over a period certain
not exceeding:
1. less the annuity starting date is before
the first distribution calendar year, the life expectancy
of the designated beneficiary determined using the
beneficiary's age as of the beneficiary's birthday in the
calendar year immediately following the calendar year
of the Participant's death; or
2. if the annuity starting date is before the
first distribution calendar year, the life expectancy of
the designated beneficiary determined using the
beneficiary's age as of the beneficiary's birthday in the
calendar year that contains the annuity starting date.
B. No Designated Beneficiary. If the Participant
dies before the date distributions begin and there is no
designated beneficiary as of September 30 of the year
following the year of the Participant's death, distribution of
the Participant's entire interest will be completed by
December 31 of the calendar year containing the fifth
anniversary of the Participant's death.
C. Death of Surviving Spouse Before Distributions
to Surviving Spouse Begin. If the Participant dies before the
date distribution of his or her interest begins, the
Participant's surviving spouse is the Participant's sole
designated beneficiary, and the surviving spouse dies before
distributions to the surviving spouse begin, this Section
11.9(c)(2) will apply as if the surviving spouse were the
Participant, except that the time by which distributions must
begin will be determined without regard to Section
11.9(b)(2)(i).
(8) Changes to Annuity Payment Period.
(1) Permitted Changes. An annuity payment period may
be changed only in association with an annuity payment increase
described in 11.9(c)(1)(iv) or in accordance with Section 11.9(0(2).
(ii) Reannuitization. An annuity payment period may be
changed and the annuity payments modified in accordance with
that change if the conditions in Section 11.9(0(3) are satisfied, and:
A. the modification occurs when the Participant
retires or in connection with a plan termination;
B. the payment period prior to modification is a
period certain without life contingencies; or
C. the annuity payments after modification are
paid under a qualified joint and survivor annuity over the joint
lives of the Participant and a designated beneficiary, the
Participant's spouse is the sole designated beneficiary, and
the modification occurs in connection with the Participants
becoming married to such spouse.
(iii) Conditions. The conditions in this Section (11.9f)(3)
are satisfied if:
(9)
A. the future payments after the modification
satisfy the requirements of § 401(a)(9), § 1.401(a)(9) of the
regulations, and this article (determined by treating the date
of the change as a new annuity starting date and the
actuarial present value of the remaining payments prior to
modification as the entire interest of the Participant);
B. for purposes of § 415 and § 417 of the Code,
the modification is treated as a new annuity starting date;
C. after taking into account the modification, the
annuity (including all past and future payments) satisfies the
requirements of § 415 of the Code (determined at the
original annuity starting date, using the interest rates and
mortality tables applicable to such date); and
D. the end point of the period certain, if any, for
any modified payment period is not later than the end point
available to the employee at the original annuity starting date
under § 401(a)(9) of the Code and this article.
Payments to a Surviving Child.
(1) Special Rule. For purposes of this Section 11.9(g),
payments made to a Participant's surviving child until the child
reaches the age of majority (or dies, if earlier), shall be treated as if
such payments were made to the surviving spouse to the extent the
payments become payable to the surviving spouse upon cessation
of the payments to the child.
(ii) Age of Majority. For purposes of this Section 11.9(g),
a child shall be treated as having not reached the age of majority if
the child has not completed a specified course of education and is
under the age of 26. In addition, a child who is disabled within the
meaning of § 72(m)(7) when the child reaches the age of majority
shall be treated as having not reached the age of majority so long
as the child continues to be disabled.
(10) Definitions.
(1) Actuarial Gain. The difference between an amount
determined using the actuarial assumptions (i.e., investment return,
mortality, expense, and other similar assumptions) used to calculate
the initial payments before adjustment for any increases and the
amount determined under the actual experience with respect to
those factors. Actuarial gain also includes differences between the
amount determined using actuarial assumptions when an annuity
was purchased or commenced and such amount determined using
actuarial assumptions used in calculating payments at the time the
actuarial gain is determined.
(ii) Designated Beneficiary. The individual who is
designated by the Participant (or the Participant's surviving spouse)
as the beneficiary of the Participant's interest under the plan and
who is the designated beneficiary under § 401(a)(9) of the Code
and § 401(a)(9)-4 of the regulations.
(iii) Distribution Calendar Year. A calendar year for which
a minimum distribution is required. For distributions beginning
before the Participant's death, the first distribution calendar year is
the calendar year immediately preceding the calendar year which
contains the Participant's required beginning date. For distributions
beginning after the Participant's death, the first distribution calendar
year is the calendar year in which distributions are required to begin
pursuant to Section 11.9(b)(2).
(iv) Eligible Cost -of -Living Index. An index described in
paragraphs (b)(2), (b)(3) or (b)(4) of § 1.401(a)(9)-6, Q&A -14, of the
regulations.
(v) Life Expectancy. Life expectancy as computed by
use of the Single Life Table in § 1.401(a)(9)-9, Q&A -1, of the
regulations.
(vi) Required Beginning Date.
A. The required beginning date is April 1 of the
calendar year following the later of the calendar year in
which the Participant attains age 70-1/2 or the calendar year
in which the Participant retires, except that benefit
distributions to a 5 -percent owner must commence by April 1
of the calendar year following the calendar year in which the
Participant attains age 70-1/2.
B. A Participant's accrued benefit will be
actuarially increased to take into account the period after age
70-1/2 in which the Participant does not receive any benefits
under the plan. The actuarial increase will begin on April 1
following the calendar year in which the employee attains
age 70-1/2 (January 1, 1997 in the case of an employee who
attains age 70-1/2 prior to 1996), and will end on the date on
which benefits commence after retirement in an amount
sufficient to satisfy § 401(a)(9). The amount of actuarial
increase payable as of the end of the period for actuarial
increases will be no less than the actuarial equivalent of the
Participant's retirement benefits that would have been
payable as of the date the actuarial increase must
commence plus the actuarial equivalent of additional
benefits accrued after that date, reduced by the actuarial
equivalent of any distributions made after that date. The
actuarial increase under this section is not in addition to the
actuarial increase required for that same period under § 411
to reflect the delay in payments after normal retirement,
except that the actuarial increase required under this section
will be provided even during the period during which an
employee is in § 203(a)(3)(B) service. For purposes of
§ 411(b)(1)(H), the actuarial increase will be treated as an
adjustment attributable to the delay in distribution of benefits
after the attainment of normal retirement age. Accordingly,
to the extent permitted under § 411(b)(1)(H), the actuarial
increase required under this Section 11.9 will reduce the
benefit accrual otherwise required under § 411(b)(1)(H)(i),
except that the rules on the suspension of benefits are not
applicable.
(11) Transition Rules. Alternative Compliance with Certain
Annuity Requirements in 2003, 2004 and 2005. Sections F-3 and F -3A of
§ 1.401(a)(9)-1 of the 1987 proposed regulations, A-1 of § 1.401(a)(9)-6 of
the 2001 proposed regulations, § 1.401(a)(9) -6T of the temporary
regulations, or a reasonable and good faith interpretation of the
requirements of § 401(a)(9) of the Code (as elected by the Employer)
apply in lieu of the requirements of Sections 11.9(c)(d) or (f) for purposes
of determining minimum required distributions for calendar years 2003,
2004, 2005.
(12) TEFRA Election. Notwithstanding anything to the contrary
herein provided, distribution on behalf of any Employee who has made a
designation under Section 242(b)(2) of the Tax Equity and Fiscal
Responsibility Act (a "Section 242(b)(2) Election") may be made in
accordance with all of the following requirements (regardless of when
such distribution commences):
(i) The distribution by the Plan is one which would not
have disqualified the Plan under Code Section 401(a)(9) as in
effect prior to amendment by the Deficit Reduction Act of 1984;
(ii) The distribution is in accordance with a method of
distribution designated by the Employee whose interest in the Plan
is being distributed or, if the Employee is deceased by a beneficiary
of such Employee;
(iii) Such designation was in writing, was signed by the
Employee or the beneficiary, and was made before January 1,
1984;
(iv) The Employee had accrued a benefit under the Plan
as of December 31, 1983; and
(v) The method of distribution designated by the
Employee or the beneficiary specifies the time at which distribution
will commence, the period over which distributions will be made
and in the case of any distribution upon the Employee's death, the
beneficiaries of the Employee listed in order of priority.
A distribution upon death will not be covered by this transitional rule
unless the information in the designation contains the required information
described above with respect to the distributions to be made upon the
death of the Employee
For any distribution which commences before January 1, 1984, but
continues after December 31, 1983, the Employee or the beneficiary, to
whom such distribution is being made, will be presumed to have
designated the method of distribution under which the distribution is being
made if the method of distribution was specified in writing and the
distribution satisfies the requirements in clauses (i) through (v) above.
If a designation is revoked, any subsequent distribution must satisfy
the requirements of Section 401(a)(9) of the Code and the regulations
thereunder. If a designation is revoked subsequent to the date
distributions are required to begin, the Plan must distribute by the end of
the calendar year following the calendar year in which the revocation
occurs the total amount not yet distributed which would have been
required to have been distributed to satisfy Section 401(a)(9) of the Code
and the regulations thereunder, but for the Section 242(b)(2) Election. For
calendar years beginning after December 31, 1988, such distributions
must meet the minimum distribution incidental benefit requirements. Any
changes in the designation will be considered to be a revocation of the
designation. However, the mere substitution or addition of another
beneficiary (one not named in the designation) under the designation will
not be considered to be a revocation of the designation, so long as such
substitution or addition does not alter the period over which distributions
are to be made under the designation, directly or indirectly (for example,
by altering the relevant measuring life).
In the case in which an amount is transferred or rolled over from
one plan to another plan, the rules in Section 1.401(a)(9)-8, Q&A -14 and
Q&A -15, shall apply.
ARTICLE XII.
Administrator's Powers, Rights and Duties
12.1 Investment Powers and Duties of the Administrator. All Employer and
Mandatory Employee Contributions under the Plan shall be forwarded by the
Administrator to the Insurer to be deposited in the Group Contract.
12.2 Defense of Plan. The Administrator may abandon, adjust, arbitrate,
compromise, sue on, or defend, or otherwise deal with and settle claims in favor of or
against the Plan hereunder.
12.3 Authority of Administrator. The Administrator may authorize any one
Administrator to execute, endorse and deliver any instrument to be executed by the
Administrators, and any person, firm, or corporation, including any brokerage house or
bank, may rely upon and shall be protected in relying upon the signature of any one
Administrator with the same force and effect as though all Administrators had signed.
12.4 Reliance on Administrator. No person, including insurance carriers, shall
be obligated to see to the application of any money paid or property delivered to the
Administrators, nor shall any such person be required to take cognizance of the
provisions of the Plan, nor to question the authority of the Administrators to do any act
as respects the Group Contract nor the authority of the Administrators to receive and
receipt for any money becoming due and payable under the Group Contract.
ARTICLE XIII.
Funding
13.1 Funding Policy. The Plan has been established for the sole purpose of
providing benefits to the Participants and their beneficiaries. In determining its
investments hereunder, the Pian Administrator shall take account of the short and long
range needs of the Pian as to the time benefits shall be payable and the requirements
therefor. Benefits may be provided from time to time through any combination of
investment media designated to provide the requisite liquidity, growth and security
appropriate to the Plan.
13.2 Minimum Funding Standard Account. A "Minimum Funding Standard
Account" shall be established and maintained to test, annually or at any point in time,
the adequacy of the funding of the Plan. The account shall be charged and credited in
accordance with ERISA and the Code, or, in the alternative, the Plan may establish and
maintain an "alternative minimum funding standard account" in accordance with ERISA
and the Code (as may be applicable). Contributions of the Employers under the Plan
may be the lesser of the amount allowed under either calculation.
ARTICLE XIV.
Loans to Participants
No loans to Participants are permitted under the Plan.
ARTICLE XV.
Administration
15.1 Administration of the Plan. The Administrators shall administer the Plan in
accordance with its terms and shall have all powers necessary to carry out the
provisions of the Pian. The Administrators shall interpret the Plan and shall determine
all questions arising in the administration, interpretation, and application of the Plan.
These powers shall be exercised by the Administrators on a uniform basis without
discrimination.
15.2 Adjustments. The Administrators shall have full power and authority to
make equitable adjustments for any mistakes or errors made in the administration of the
Plan.
15.3 Payment of Administrative Expenses. The expenses incurred by the
Administrators in the administration of the Plan, including fees for legal services
rendered to the Administrators, and all other proper charges and expenses of the
Administrators and of their agents and counsel, may be paid from and shall be
expenses of the Plan. To the extent such compensation, fees, charges and expenses
are not paid from the Plan, they shall be paid by the Employers. All investment
expenses and taxes of any and all kinds whatsoever that may be levied or assessed
under existing or future laws upon the assets of the Plan or income thereof shall be paid
from the Plan.
15.4 Annual Report of the Administrators. The Administrators shall keep
accurate and detailed accounts of all investments, receipts, disbursements and other
transactions under the Plan, and all accounts, books, and records relating thereto shall
be open to inspection and audit at all, reasonable times.
15.5 Administrators Protective Clause. An Administrator shall not be liable for
the acts or omissions of a joint Administrator or fiduciary unless (a) the Administrator
knowingly participates in, or knowingly attempts to conceal the act or omission of,
another fiduciary and the Administrator knows the act or omission is a breach of a
fiduciary responsibility by the other fiduciary; or (b) the Administrator has knowledge of
a breach by the other fiduciary and shall not make reasonable efforts to remedy the
34
breach; or (c) the Administrator's breach of his own fiduciary responsibility permits the
other fiduciary to commit a breach.
15.6 Fiduciary Responsibility. Anything to the contrary notwithstanding, the
Administrators must (a) discharge their fiduciary duties for the exclusive purpose of
providing benefits to Participants and their beneficiaries and to defray reasonable
expenses of administering the Plan; (b) act with the care, skill, prudence, and diligence
.under the circumstances then prevailing that a prudent man acting in a like capacity
and familiar with such matters would use in the conduct of an enterprise of a like
character and with like aims; (c) diversify all investments of the assets of the Plan so as
to minimize the risk of large losses, unless under the circumstances it is clearly prudent
not to do so; and (d) act in accordance with the documents and instruments governing
the Plan insofar as such documents and instruments are consistent with the provisions
of ERISA.
ARTICLE XVI.
Amendment and Termination
16.1 Amendment of Plan. The Employers reserve the right at any time and
from time to time to amend the Plan to any extent and in any manner that they deem
advisable. All Participants and all persons claiming any interest hereunder shall be
bound thereby; provided, however, that no such amendment:
(a) shall divest any person having an interest in the Plan, except that
amendments may be so made if, in the opinion of its counsel, such action is
necessary to meet the requirements of Sections 401 and 501 of the Code, as
amended, or the corresponding provisions of any subsequent revenue law;
(b) shall have the effect of revesting in an Employer any interest in the
assets of the Pian;
(c) shall cause or permit any property held subject to the terms of this
Plan to be diverted for purposes other than the exclusive benefit of the present or
future Participants and their beneficiaries; or
(d) shall eliminate an optional form of benefit or eliminate or reduce an
"early retirement benefit" or a "retirement -type subsidy" (as such terms are
defined by regulations to be promulgated by the Secretary of the Treasury).
In addition, no amendment to the Plan shall be effective to the extent it has the effect of
decreasing a Participant's Accrued Benefit; provided, however, a Participant's Accrued
Benefit may be reduced to the extent permitted by Code Section 412(c)(8). For
purposes of this Section, a Plan amendment which has the effect of decreasing a
Participant's Accrued Benefit or eliminating an optional form of benefit, with respect to
benefits attributable to service before the amendment shall be treated as reducing an
Accrued Benefit.
16.2 Termination. The Employers have established this Plan with a bona fide
intention and expectation that it will make its contributions indefinitely; however, no
Employer shall be under any obligation or liability whatsoever to continue its
contributions or to maintain the Plan for any given length of time and any Employer
may, in its sole and absolute discretion, anything herein to the contrary notwithstanding,
discontinue its contributions at any time without any liability whatsoever for such
discontinuance or termination, and the Employers or any one of them may, in their sole
and absolute discretion, anything herein to the contrary notwithstanding, terminate the
Plan or their participation in the Plan at any time without any liability whatsoever for
such termination. Any residual assets of the Plan, after all liabilities to Participants and
their beneficiaries have been satisfied, shall be returned to the Employers based (to the
extent practicable) on the ratio of the difference of each Employer's contributions to the
Accrual Benefits of the Employer's respective Participants.
16.3 Total Vesting Upon Termination. In the event of termination or partial
termination of the Plan or if an Employer should permanently discontinue contributions
under the Plan or withdraw from the Plan, the rights of all affected Participants to
benefits accrued to the date of such termination, partial termination or permanent
discontinuation of contributions shall not thereafter be subject to forfeiture, unless a
Participant incurred a one-year break in service which was not followed by the re-
employment of the.
16.4 Events of Plan Termination. The Plan shall terminate upon the delivery to
the Administrator of a notice of termination executed by the Employers, specifying the
date at which the Plan shall terminate.
The permanent discontinuation of contributions or withdrawal from the Plan by an
Employer shall not, however, terminate the Plan as to the funds then held under the
Plan or operate to accelerate any payment or distributions to or for the benefit of the
Participants, but the Administrators shall continue to administer the Plan in accordance
with the provisions hereof.
ARTICLE XVII.
Miscellaneous
17.1 Participant's Rights. The adoption and maintenance of ,the Plan shall not
be deemed to be a contract between an Employer and its employees. Nothing herein
contained shall be deemed to give to any employee the right to be retained in the
employment of an Employer or to interfere with the right of an Employer to discharge
any employee at any time, nor shall it be deemed to give an Employer the right to
require any employee to remain in its employment, nor shall it interfere with the
employee's right to terminate his employment at any time.
17.2 Benefits Solely from Group Contract. AH benefits payable under the Plan
shall be paid or provided for solely from the Group Contract, and the Employers assume
no liability or responsibility therefor. The Employers shall not in any way guarantee the
assets of the Pian from loss or depreciation.
36
17.3 Status of Group Contract and Insurer. All right, title and interest in and to
the Group Contract shall be vested in, and reside exclusively in the Administrator and
no employee shall have any right, title or interest in or to the Group Contract or any
other assets or investments of the Plan except to have the same held, invested and
applied in accordance with the provisions of this Plan.
The obligations of the Insurer shall be governed solely by the provisions of
the Group Contract and the Insurer shall not be required to perform any act not provided
for or contrary to the provisions of the Group Contract. The Insurer shall not be bound
by the provisions of the Plan; and, until notice of an amendment or termination of the
Plan has been delivered to the Insurer, the Insurer shall be fully protected in assuming
the Plan has not been amended or terminated according to the latest information which
it has received.
17.4 Prohibition Against Diversion of Funds. No employee shall acquire any
right in or title to any assets held in the Plan for his account, otherwise than byand
through the payment thereof by the Administrator in the manner hereinbefore in this
Plan provided; nor shall any employee have power to transfer, assign, anticipate,
mortgage or otherwise encumber in advance either his interest in this Plan or other
property held by the Administrator for his benefit under the terms of the Plan, except
with respect to qualified domestic relations orders; nor shall the interest of such
employee in the Plan or other property held by the Administrator for his benefit be
subject to garnishment, attachment, or other seizure or sequestration for the payment of
any debts or judgments against said employee (except qualified domestic relations
orders), or be transferable by operation of law in the event of bankruptcy, insolvency or
otherwise.
In the event, however, that any employee's benefits are garnished or
attached by order of any court, the Administrator may bring an action for a declaratory
judgment in a court of competent jurisdiction to determine the proper recipient of the
benefits to be paid by the Plan. During the pendency of said action, any benefit that
become payable shall be paid into the court as they become payable, to be distributed
by the court to the recipient it deems proper at the close of said action.
In the event an Employer shall receive a domestic relations order relating
to any employee, the Employer shall take such action as is required by Section 414(p)
of the Code.
17.5 Certified Evidence. Evidence required of anyone under this Agreement
may be by certificate, affidavit, endorsement or any other written instrument which the
person acting in reliance thereon believes to be pertinent, reliable and genuine, and to
have been signed, made or presented by the proper and duly authorized party or
parties.
17.6 Named Fiduciaries and Allocation of Responsibility. Necessary parties to
any accounting, litigation or other proceedings shall include only the Employers and the
Administrator (if different than the Employers), and the settlement or judgment in any
such case in which the Administrator is duly served or cited shall be binding upon all
persons entitled to benefits under the Plan, the estate of any such person, and upon all
persons claiming by, through or under them.
177 Returned Distribution. If any check in payment of a benefit hereunder.
which has been mailed by regular United States mail to the last address of the payee
furnished the Administrator is returned unclaimed, the Administrator shall discontinue
further payments to such payee until the whereabouts of the payee are determined.
17.8 Return of Contribution. The principal or income of the assets held under
the Plan shall not be paid to or reinvested in an Employer or be used for any purpose
whatsoever other than the exclusive benefit of the Participants or their beneficiaries
except where a contribution has been made by an Employer by a mistake of fact, in
which event such contribution shall be returned to the Employer within one (1) year from
the date the contribution is made in error.
17.9 Governing Law. This instrument shall be construed and enforced
according to the laws of the State of Illinois, and all provisions hereof shall be
administered according to the laws of said State except to the extent that such laws are
superseded by the provisions of ERISA which are applicable to the Plan.
17.10 Merger or Consolidation. In the case of any merger or consolidation with,
or transfer of assets or liabilities to, any other plan, each employee will be entitled to
receive a benefit immediately after the merger, consolidation or transfer (if the Plan then
terminated) which is equal to or greater than the benefit he would have been entitled to
receive immediately before the merger, consolidation or transfer (if the Plan had then
terminated).
17.11 Notice Upon Distribution. On or before the end of the two week period
commencing on the date of any "qualifying rollover distribution" (as such term is defined
in Section 402(f) of the Code) from the Plan, the Administrator shall provide the
recipient of such distribution with a written explanation as to how such distribution (i)
may qualify for special income tax treatment and/or (ii) may be rolled over into certain
other tax qualified retirement plans.
ARTICLE XVIII.
Special Rules Relating to Veterans Reemployment Rights Under USERRA
Effective on and after December, 1994, the following special provisions of this
Section shall apply to an Employee or Participant who is reemployed in accordance with
the reemployment provisions of USERRA following a period of qualifying military service
(as determined under USERRA):
(a) Each period of qualifying military service served by an Employee or
Participant shall, upon such reemployment, be counted toward determining the
Employee's or Participant's Years of Benefit Accrual, Year of Participation and
Year of Continuous Service with an Employer for all purposes of the Plan,
including determining the amount of the Participant's Accrued Benefit and the
38
vested percentage in his Accrued Benefit. In addition, the survivors of any
Participant who dies on or after January 1, 2007, while performing qualified
military service, are entitled to any additional benefits (other than contributions
relating to the period of qualified military service, but including vesting service
credit for such period and any survivor benefits) that would have been provided
under the Plan had the Participant resumed employment on the day preceding
the Participant's death and then terminated employment on account of death.
(b) For all purposes under the Plan, the Participant shall be treated as
having received compensation from an Employer based on the rate of
compensation the Participant would have received during the period of qualifying
military service, or if that rate is not reasonably certain, on the basis of the
Participant's average rate of compensation during the 12 -month period
immediately preceding such period.
(c) Mandatory Employee Contributions shall not be subject to any
otherwise applicable limitation under IRC Section 404(a) or 415, and shall not be
taken into account in applying such limitations to either Participant or Employer
contributions under the Plan or any other plan, with respect to the year in which
such contributions are made, and such contributions shall be subject to these
limitations only with respect to the year to which such contributions relate and
only in accordance with Regulations prescribed by the Internal Revenue Service.
ARTICLE XIX.
Portability
19.1 Portability. This Article applies to distributions made after December 31,
2001. Notwithstanding any provision of the plan to the contrary that would otherwise
limit a distributee's election under this part, a distributee may elect, at the time and in
the manner prescribed by the plan administrator, to have any portion of an eligible
rollover distribution that is equal to at least $500 paid directly to an eligible retirement
plan specified by the distributee in a direct rollover. If an eligible rollover distribution is
less than $500, a distributee may not make the election described in the preceding
sentence to rollover a portion of the eligible rollover distribution.
19.2 Definitions.
(a) Eligible rollover distribution: An eligible rollover distribution is any
distribution of all .or any portion of the balance to the credit of the distributee,
except that an eligible rollover distribution does not include: any distribution that
is one of a series of substantially equal periodic payments (not less frequently
than annually) made for the life (or life expectancy) of the distributee or the joint
lives (or joint life expectancies) of the distributee and the distributee's designated
beneficiary, or for a specified period of ten years or more; any distribution to the
extent such distribution is required under Section 401(a)(9) of the internal
revenue Code; and the portion of any distribution that is not includible in gross
income (determined without regard to the exclusion for net unrealized
appreciation with respect to employer securities); and any other distribution(s)
that is reasonably expected to total less than $200 during a year.
A portion of a distribution shall not fail to be an eligible rollover
distribution merely because the portion consists of after-tax employee
contributions which are not includible in gross income. However, such portion
may be transferred only to (1) a traditional individual retirement account or
annuity described in § 408(a) or (b) of the Code; (2) for taxable years beginning
after December 31, 2001 and before January 1, 2007 to a qualified trust which is
part of a defined contribution, defined benefit or annuity plan described in
§ 401(a) or § 403(a) or to an annuity contract described in § 403(b), if such plan
or contract provides for separate accounting for amounts so transferred
(including interest thereon), including separately accounting for the portion of
such distribution which is includible in gross income and the portion of such
distribution which is not so includible.
(b) Eligible Retirement Plan: An eligible retirement plan is an eligible
plan under §457(b) of the Code which is maintained by a state, political
subdivision of a state, or any agency or instrumentality of a state or political
subdivision of a state and which agrees to separately account for amounts
transferred into such plan from this plan, an individual retirement account
described in §408(a) of the Code, and individual retirement annuity described in
§408(a) of the Code, an annuity plan described in §403(a) of the Code, an
annuity contract described in §403(b) of the Code, or a qualified defined
contribution plan described in §401(a) of the Code, that accepts the distributee's
eligible rollover distribution.
(c) Distributee: A distributee includes an employee or former
employee. In addition, the employee's or former employee's surviving spouse
and the employee's or former employee's spouse or former spouse which is the
alternate payee under a qualified domestic relations order, as defined in Section
414(P) of the Code, are distributees with regard to the interest of the spouse or
former spouse. A distributee also includes the Participant's non -spouse
designated beneficiary under Section 11.3 of the Plan. In the case of a non -
spouse beneficiary, the direct rollover may be made only to an individual
retirement account or annuity described in §408(a) or §408(b) ("IRA") that is
established on behalf of the designated beneficiary and that will be treated as an
inherited IRA pursuant to the provisions of §402(a)(11). Also, in this case, the
determination of a required minimum distribution under §401(a)(9) that is
ineligible for rollover shall be made in accordance with Notice 2007-7, Q&A 17
and 18, 2007-5 I.R.B. 395.
(d) Direct Rollover. A direct rollover is a payment by the plan to the
eligible retirement plan specified by the distributee.
40
ARTICLE XX.
Limitation on Benefits
20.1 The limitations of this Article shall apply in limitation years beginning on or
after July 1, 2007, except as otherwise provided herein.
20.2 The Annual Benefit otherwise payable to a Participant under the Plan at
any time shall not exceed the Maximum Permissible Benefit. If the benefit the
Participant would otherwise accrue in a Limitation Year would produce an Annual
Benefit in excess of the Maximum Permissible Benefit, the benefit shall be limited (or
the rate of accrual reduced) to a benefit that does not exceed the Maximum Permissible
Benefit.
20.3 If the Participant is, or has ever been, a Participant in another qualified
defined benefit plan (without regard to whether the Plan has been terminated)
maintained by the Employer or a predecessor employer, the sum of the Participant's
Annual Benefits from all such plans may not exceed the Maximum Permissible Benefit.
20.4 The application of the provisions of this Article shall not cause the
Maximum Permissible Benefit for any Participant to be less than the Participant's
Accrued Benefit under all the defined benefit plans of the Employer or a predecessor
employer as of the end of the last Limitation Year beginning before July 1, 2007 under
provisions of the plans that were both adopted and in effect before April 5, 2007. The
preceding sentence applies only if the provisions of such defined benefit plan that were
both adopted and in effect before April 5, 2007 satisfied the applicable requirements of
statutory provisions, regulations, and other published guidance relating to § 415 of the
Internal Revenue Code in effect as of the end of the last Limitation Year beginning
before July 1, 2007, as described in § 1.415(a) -1(g)(4) of the Income Tax Regulations.
20.5 The limitations of this Article XX shall be determined and applied taking
into account the rules in Section 20.7.
20.6 Definitions.
(a) Annual Benefit: A benefit that is payable annually in the form of a
straight life annuity. Except as provided below, where a benefit is payable in a
form other than a straight life annuity, the benefit shall be adjusted to an
actuarially equivalent straight life annuity that begins at the same time as such
other form of benefit and is payable on the first day of each month, before
applying the limitations of this Article. For a Participant who has or will have
distributions commencing at more than one annuity starting date, the Annual
Benefit shall be determined as of each such annuity starting date (and shall
satisfy the limitations of this Article as of each such date), actuarially adjusting for
past and future distributions of benefits commencing at the other annuity starting
dates. For this purpose, the determination of whether a new starting date has
occurred shall be made without regarding to § 1.401(1)-20, Q&A 10(d), and with
regard to § 1.415(b)-1(b)(1)(iii)(B) and (C) of the Income Tax Regulations.
No actuarial adjustment to the benefit shall be made for (a) survivor
benefits payable to a surviving spouse under a qualified joint and survivor annuity
to the extent such benefits would not be payable if the Participant's benefit were
paid in another form; (b) benefits that are not directly related to retirement
benefits (such as a qualified disability benefit, preretirement incidental death
benefits, and post-retirement medical benefits); and (c) the inclusion in the form
of benefit of an automatic benefit increase feature, provided the form of benefit is
not subject to § 417(e)(3) of the Internal Revenue Code and would otherwise
satisfy the limitations of this Article, and the Plan provides that the amount
payable under the form of benefit in any Limitation Year shall not exceed the
limits of this Article applicable at the annuity starting date, as increased in
subsequent years pursuant to § 415(d). For this purpose, an automatic benefit
increase feature is included in a form of benefit if the form of benefit provides for
automatic, periodic increases to the benefits paid in that form.
The determination of the Annual Benefit shall take into account
social security supplements described in § 411(a)(9) of the Internal Revenue
Code and benefits transferred from another defined benefit plan, other than
transfers of distributable benefits pursuant § 1.411(d)-4, Q&A -3(c), of the Income
Tax Regulations, but shall disregard benefits attributable to employee
contributions or rollover contributions.
Effective for distributions in plan years beginning after December
31, 2003, the determination of actuarial equivalence of forms of benefit other
than a straight life annuity shall be made in accordance with Section 20.6(a) or
(b). below.
(1) Benefit Forms Not Subject to § 417(e)(3): The straight life
annuity that is actuarially equivalent to the Participant's form of benefit
shall be determined under this Section 20.6(a) if the form of the
Participant's benefit is either (1) a nondecreasing annuity (other than a
straight life annuity) payable for a period of not less than the life of the
Participant (or, in the case of a qualified pre -retirement survivor annuity,
the life of the surviving spouse), or (2) an annuity that decreases during
the life of the Participant merely because of (a) the death of the survivor
annuitant (but only if the reduction is not below 50% of the benefit payable
before the death of the survivor annuitant), or (b) the cessation or
reduction of Social Security supplements or qualified disability payments
(as defined in § 401(a)(11)).
(1) Limitation Years beginning before July 1, 2007. For
Limitation Years beginning before July 1, 2007, the actuarially
equivalent straight life annuity is equal to the annual amount of the
straight Life annuity commencing at the same annuity starting date
that has the same actuarial present value as the Participant's form
of benefit computed using whichever of the following produces the
greater annual amount: (1) the interest rate specified in Section 1.2
42
of the Plan and the mortality table (or other tabular factor) specified
in Section 1.2 of the Plan for adjusting benefits in the same form;
and (II) a 5 percent interest rate assumption and the applicable
mortality table defined in Section 1.2 of the Plan for that annuity
starting date.
(ii) Limitation Years beginning or after July 1, 2007. For
Limitation Years beginning on or after July 1, 2007, the actuarially
equivalent straight life annuity is equal to the greater of (1) the
annual amount of the straight life annuity (if any) payable to the
Participant under the Plan commencing at the same annuity starting
date as the Participant's form of benefit; and (2) the annual amount
of the straight life annuity commencing at the same annuity starting
date that has the same actuarial present value as the Participant's
form of benefit, computed using a 5 percent interest rate
assumption and the applicable mortality table defined in Section 1.2
of the Plan for that annuity starting date.
(2) Benefit Forms Subject to § 417(e)(3). The straight life
annuity that is actuarially equivalent to the Participant's form of benefit
shall be determined under this paragraph if the form of the Participant's
benefit is other than a benefit form described in Section 20.6(a). In this
case, the actuarially equivalent straight life annuity shall be determined as
follows:
(i) Annuity Starting Date in Plan Years Beginning After
2005. If the annuity starting date of the Participant's form of benefit
is in a plan year beginning after 2005, the actuarially equivalent
straight life annuity is equal to the greatest of (I) the annual amount
of the straight life annuity commencing at the same annuity starting
date that has the same actuarial present value as the Participant's
form of benefit, computed using the interest rate specified in
Section 1.2 of the Plan and the mortality table (or other tabular
factor) specified in Section 1.2 of the Plan for adjusting benefits in
the same form; (II) the annual amount of the straight life annuity
commencing at the same annuity starting date that has the same
actuarial present value as the Participant's form of benefit,
computed using a 5.5 percent interest rate assumption and the
applicable mortality table defined in Section 1.2 of the Plan; and (III)
the annual amount of the straight life annuity commencing at the
same annuity starting date that has the same actuarial present
value as the Participant's form of benefit, computed using the
applicable interest rate defined in Section 1.2 of the Plan and the
applicable mortality table defined in Section 1.2 of the Plan, divided
by 1.05.
(ii) Annuity Starting Date in Plan Years Beginning in 2004
or 2005. If the annuity starting date of the Participant's form of
benefit is a plan year beginning in 2004 or 2005, the actuarially
equivalent straight life annuity is equal to the annual amount of the
straight life annuity commencing at the same annuity starting date
that has the same actuarial present value as the Participant's form
of benefit, computed using whichever of the following produces the
greater annual amount: (1) the interest rate specified in Section 1.2
of the Pian and the mortality table (or other tabular factor) specified
in Section 1.2 of the Plan for adjusting benefits in the same form;
and (II) a 5.5 percent interest rate assumption and the applicable
mortality table defined in Section 1.2 of the Plan.
If the annuity starting date of the Participant's benefit
is on or after the first day of the first plan year beginning in 2004
and before December 31, 2004, the application of this Section
20.6.1(b)(ii) shall not cause the amount payable under the
Participant's form of benefit to be less than the benefit calculated
under the plan, taking into account the limitations of this Article,
except that the actuarially equivalent straight life annuity is equal to
the annual amount of the straight life annuity commencing at the
same annuity starting date that has the same actuarial present
value as the Participant's form of benefit, computed using
whichever of the following produces the greatest annual amount:
A. the interest rate specified in Section 1.2 of the
Plan and the mortality table (or other tabular factor) specified
in Section 1.2 of the Plan for adjusting benefits in the same
form;
B. the applicable interest rate defined in Section
1.2 of the Plan and the applicable mortality table defined in
Section 1.2 of the Plan; and
C. the applicable interest rate defined in Section
1.2 of the Pian (as in effect on the last day of the last plan
year beginning before January 1, 2004, under the provisions
of the Plan then adopted and in effect) and the applicable
mortality table defined in Section 1.2 of the Plan.
(b) Compensation: Compensation shall mean information required to
be reported under §§ 6041, 6051, and 6052 of the Internal Revenue Code
(wages, tips, and other compensation as reported on Form W-2). Compensation
is defined as wages, within the meaning of § 3401(a), and all other payments of
compensation to an employee by the Employer (in the course of the Employer's
trade or business) for which the Employer is required to furnish the employee a
written statement under §§ 6041(d), 6051(a)(3), and 6052. Compensation shall
44
be determined without regard to any rules under § 3401(a) that limit the
remuneration included in wages based on the nature or location of the
employment or the services performed (such as the exception for agricultural
labor in § 3401(a)(2)).
For any self-employed individual, Compensation shall mean earned
income.
Except as provided herein, for Limitation Years beginning after
December 31, 1991, compensation for a Limitation Year is the compensation
actually paid or made available during such Limitation Year. Compensation for a
Limitation Year shall include amounts earned but not paid during the Limitation
Year solely because of the timing of pay periods and pay dates, provided the
amounts are paid during the first few weeks of the next Limitation Year, the
amounts are included on a uniform and consistent basis with respect to ail
similarly situated employees, and no compensation is included in more than one
Limitation Year.
For Limitation Years beginning on or after July 1, 2007,
compensation for a Limitation Year shall also include compensation paid by the
later of 2-1/2 months after an employee's severance from employment with the
Employer maintaining the plan or the end of the Limitation Year that includes the
date of the employee's severance from employment with the Employer
maintaining the plan, if:
(1) the payment is regular compensation for services during the
employee's regular working hours, or compensation for services outside
the employee's regular working hours (such as overtime or shift
differential), commissions, bonuses, or other similar payments, and,
absent a severance from employment, the payments would have been
paid to the employee while the employee continued in -employment with
the employer;
(2) the payment is for unused accrued bona fide sick, vacation
or other leave that the employee would have been able to use if
employment had continued; or
(3) the payment is received by the employee pursuant to a
nonqualified unfunded deferred compensation plan and would have been
paid at the same time if employment had continued, but only to the extent
includible in gross income.
Any payments not described above shall not be considered
compensation if paid after severance from employment, even if they are paid by
the later of 2-1/2 months after the date of severance from employment or the end
of the Limitation Year that includes the date of severance from employment,.
except, (a) payments to an individual who does not currently perform services for
the Employer by reason of qualified military service (within the meaning of §
414(u)(1)) to the extent these payments do not exceed the amounts the
individual would have received if the individual had continued to perform services
for the Employer rather than entering qualified military service; or (b)
compensation paid to a Participant who is permanently and totally disabled, as
defined in Code § 22(e)(3), provided, salary continuation applies to all
Participants who are permanently and totally disabled for a fixed or determined
period, or the Participant was not a highly compensated employee, as defined in
§ 414(q), immediately before becoming disabled.
Back pay within the meaning of § 1.415(c) -2(g)(8), shall be treated
as compensation for the Limitation Year to which the back pay relates to the
extent the back pay represents wages and compensation that would otherwise
be included under the definition.
For Limitation Years beginning after December 31, 1997,
Compensation paid or made available during such Limitation Year shall include
amounts that would otherwise be included in Compensation but for an election
under § 125(a), § 402(e)(3), § 402(h)(1)(B), § 402(k), or § 457(b).
For Limitation Years beginning after December 31, 2000,
Compensation shall also include any elective amounts that are not includible in
the gross income of the employee by reason of § 132(0(4).
For Limitation Years beginning after December 31, 2001,
Compensation shall also include deemed § 125 compensation. Deemed § 125
compensation is an amount that is excludable under § 106 that is not available to
a Participant in cash in lieu of group health coverage under a § 125 arrangement
solely because the Participant is unable to certify that he or she has other health
coverage. Amounts are deemed § 125 compensation only if the Employer does
not request or otherwise collect information regarding the Participant's other
health coverage as part of the enrollment process for the health plan.
Compensation shall not include amounts paid as compensation to a
nonresident alien, as defined in § 7701(b)(1)(B), who is not a Participant in the
plan to the extent the compensation is excludable from gross income and is not
effectively connected with the conduct of a trade or business within the United
States.
(c) Defined Benefit Dollar Limitation: Effective for Limitation Years
ending after December 31, 2001, the Defined Benefit Dollar Limitation is
$160,000, automatically adjusted under § 415(d) of the Internal Revenue Code,
effective January 1 of each year, as published in the Internal Revenue Bulletin,
and payable in the form of a straight life annuity. The new limitation shall apply to
Limitation Years ending with or within the calendar year of the date of the
adjustment, but a Participant's benefits shall not reflect the adjusted limit prior to
January 1 of that calendar year. The automatic annual adjustment of the Defined
46
Benefit Dollar Limitation under § 415(d) shall apply to Participants who have had
a separation from employment.
(d) Employer: For purposes of this Article, Employer shall mean the
Employer and all members of a controlled group of corporations, as defined in §
414(b) of the Internal Revenue Code, as modified by § 415(h), all commonly
controlled trades or businesses (as defined in § 414(c), as modified, except in the
case of a brother -sister group of trades or businesses under common control, but
§ 415(h)), or affiliated service groups (as defined in § 414(m)) of which the
adopting Employer is a part, and any other entity required to be aggregated with
the Employer pursuant to § 414(o) of the Internal Revenue Code.
(e) Formerly Affiliated Plan of the Employer: A plan that, immediately
prior to the cessation of affiliation, was actually maintained by the Employer and,
immediately after the cessation of affiliation, is not actually maintained by the
Employer. For this purpose, cessation of affiliation means the event that causes
an entity to no longer be considered the Employer, such as the sale of a member
controlled group of corporations, as defined in § 414(b) of the Internal Revenue
Code, as modified by § 415(h), to an unrelated corporation, or that causes a plan
to not actually be maintained by the Employer, such as transfer of plan
sponsorship outside a controlled group.
(f) High Three -Year Average Compensation: The average
compensation for the three consecutive years of service (or, if the Participant has
Tess than three consecutive years of service, the Participant's longest
consecutive period of service, including fractions of years, but not less than one
year) with the Employer that produces the highest average. A year of service
with the Employer is the 12 -consecutive month period defined in Section 1.8 of
the Plan. In the case of a Participant who is rehired by the Employer after a
severance from employment, the Participant's high three-year average
compensation shall be calculated by excluding all years for which the Participant
performs no services for and receives no compensation from the Employer (the
break period) and by treating the years immediately preceding and following the
break period as consecutive. A Participant's compensation for a year of service
shall not include compensation in excess of the limitation under § 401(a)(17) of
the Internal Revenue Code that is in effect for the calendar year in which such
year of service begins.
(g) Limitation Year: A calendar year. All qualified plans maintained by
the Employer must use the same Limitation Year. If the Limitation Year is
amended to a different 12 -consecutive month period, the new Limitation Year
must begin on a date within the Limitation Year in which the amendment is made.
(h) Maximum Permissible Benefit: The benefits of a Participant shall
not exceed the Defined Benefit Dollar Limitation (adjusted where required, as
provided below).
(1) Adjustment for Less Than 10 Years of Participation or
Service: If the Participant has less than 10 years of participation in the
plan, the Defined Benefit Dollar Limitation shall be multiplied by a faction --
(i) the numerator of which is the number of Years (or part thereof, but not
Tess than one year) of Participation in the plan, and (ii) the denominator of
which is 10. In the case of a Participant who has less than ten Years of
Service with the Employer, the Defined Benefit Compensation Limitation
shall be multiplied by a fraction -- (i) the numerator of which is the number
of Years (or part thereof, but not less than one year) of Service with the
Employer, and (ii) the denominator of which is 10.
(2) Adjustment of Defined Benefit Dollar Limitation for Benefit
Commencement Before Age 62 or after Age 65: Effective for benefits
commencing in Limitation Years ending after December 31, 2001, the
Defined Benefit Dollar Limitation shall be adjusted if the annuity starting
date of the Participant's benefit is before age 62 or after age 65. If the
annuity starting date is before age 62, the Defined Benefit Dollar Limitation
shall be adjusted under Section 20.6.8(b)(i), as modified by Section
20.6.8(b)(iii). If the annuity starting date is after age 65, the Defined
Benefit Dollar Limitation shall be adjusted under Section 20.6.8(b)(ii), as
modified by Section 20.6.8(b)(iii).
(I) Adjustment of Defined Benefit Dollar Limitation for
Benefit Commencement Before Age 62:
A. Limitation Years Beginning Before July 1, 2007.
If the annuity starting date for the Participant's benefit is prior
to age 62 and occurs in a Limitation Year beginning before
July 1, 2007, the Defined Benefit Dollar Limitation for the
Participant's annuity starting date is the annual amount of a
benefit payable in the form of a straight life annuity
commencing at the Participant's annuity starting date that is
the actuarial equivalent of the Defined Benefit Dollar
Limitation (adjusted under Section 20.6.8(a) for years of
participation less than 10, if required) with actuarial
equivalence computed using whichever of the following
produces the smaller annual amount: (1) the interest rate
specified in Section 1.2 of the Plan and the mortality table (or
other tabular factor) specified in Section 1.2 of the Pian; or
(2) a 5 -percent interest rate assumption and the applicable
mortality table as defined in Section 1.2 of the Plan.
2007.
B. Limitation Years Beginning on or After July 1,
1. Plan Does Not Have Immediately
Commencing Straight Life Annuity Payable at Both
Age 62 and the Age of Benefit Commencement. If the
annuity starting date for the Participant's benefit is
prior to age 62 and occurs in a Limitation Year
beginning on or after July 1, 2007, and the Plan does
not have an immediately commencing straight life
annuity payable at both age 62 and the age of benefit
commencement, the Defined Benefit Dollar Limitation
for the Participant's annuity starting date is the annual
amount of a benefit payable in the form of a straight
life annuity commencing at the Participant's annuity
starting date that is the actuarial equivalent of the
Defined Benefit Dollar Limitation (adjusted under
Section 20.6.8(a) for years of participation less than
10, if required) with actuarial equivalence computed
using a 5 period interest rate assumption and the
applicable mortality table for the annuity starting date
as defined in Section 1.2 of the Plan (and expressing
the Participant's age based on completed calendar
months as of the annuity starting date).
2. Plan Has Immediately Commencing
Straight Life Annuity Payable at Both Age 62 and the
Age of Benefit Commencement. If the annuity starting
date for the Participant's benefit is prior to age 62 and
occurs in a Limitation Year beginning on or after July
1, 2007, and the Plan has an immediately
commencing straight life annuity payable at both age
62 and the age of benefit commencement, the
Defined Benefit Dollar Limitation for the Participant's
annuity starting date is the lesser of the limitation
determined under Section 20.6.8(b)(i)2.A, and the
Defined Benefit Dollar Limitation (adjusted under
Section 20.6.8(a) for years of participation less than
10, if required) multiplied by the ratio of the annual
amount of the immediately commencing straight life
annuity under the Plan at the Participant's annuity
starting date to the annual amount of the immediately
commencing straight life annuity under the plan at
age 62, both determined without applying the
limitations of this Article.
(ii) Adjustment of Defined Benefit Dollar Limitation for
Benefit Commencement After Age 65:
A. Limitation Years Beginning Before July 1, 2007.
If the annuity starting date for the Participant's benefit is after
age 65 and occurs in a Limitation Year beginning before July
1, 2007, the Defined Benefit Dollar Limitation for the
Participant's annuity starting date is the annual amount of a
benefit payable in the form of a straight life annuity
commencing at the Participant's annuity starting date that is
-the actuarial equivalent of the Defined Benefit Dollar
Limitation (adjusted under Section 20.6.8(a) for years of
participation Tess than 10, if required) with actuarial
equivalence computed using whichever of the following
produces the smaller annual amount: (1) the interest rate
specified in Section 1.2 of the Plan and the mortality table (or
other tabular factor) specified in Section 1.2 of the Plan; or
(2) a 5 -percent interest rate assumption and the applicable
mortality table as defined in Section 1.2 of the plan.
B. Limitation Years Beginning Before July 1, 2007.
1. Plan Does Not Have Immediately
Commencing Straight Life Annuity Payable at Both
Age 65 and the Age of Benefit Commencement. If the
annuity starting date for the Participant's benefit is
after age 65 and occurs in a Limitation Year beginning
on or after July 1, 2007, and the plan does not have
an immediately commencing straight life annuity
payable at both age 65 and the age of benefit
commencement, the Defined Benefit Dollar Limitation
at the Participant's annuity starting date is the annual
amount of a benefit payable in the form of a straight
life annuity commencing at the Participant's annuity
starting date that is the actuarial equivalent of the
Defined Benefit Dollar Limitation (adjusted under
Section 20.6.8 for years of participation less than 10,
if required), with actuarial equivalence computed
using a 5 percent interest rate assumption and the
applicable mortality table for that annuity starting date
as defined in Section 1.2 of the Plan (and expressing
the Participant's age based on completed calendar
months as of the annuity starting date).
2. Plan Has Immediately Commencing
Straight Life Annuity Payable at Both Age 65 and the
Age of Benefit Commencement. If the annuity starting
date for the Participant's benefit is after age 65 and
occurs in a Limitation Year beginning on or after July
1, 2007, and the Plan has an immediately
commencing straight life annuity payable at both age
65 and the age of benefit commencement, the
Defined Benefit Dollar Limitation at the Participant's
annuity starting date is the lesser of the limitation
determined under Section 20.6.8(b)(ii)II.A, and the
Defined Benefit Dollar Limitation (adjusted under
Section 20.6.8(a) for years of participation less than
10, if required) multiplied by the ratio of the annual
amount of the adjusted immediately commencing
straight life annuity under the Plan at the Participant's
annuity starting date to the annual amount of the
adjusted immediately commencing straight life annuity
under the Plan at age 65, both determined without
applying the limitations of this Article. For this
purpose, the adjusted immediately commencing
straight life annuity under the Plan at the Participant's
annuity starting date is the annual mount of such
annuity payable to the Participant, computed
disregarding the Participant's accruals after age 65
but including actuarial adjustments even if those
actuarial adjustments are used to offset accruals; and
the adjusted immediately commencing straight life
annuity under the Plan at age 65 is the annual
amount of such annuity that would be payable under
the Plan to a hypothetical Participant who is age 65
and has the same accrued benefit as the Participant.
(iii) Notwithstanding the other requirements of this Section
20.6.8(b), no adjustment shall be made to the Defined Benefit
Dollar Limitation to reflect the probability of a Participant's death
between the annuity starting date and age 62, or between age 65
and the annuity starting date, as applicable, if benefits are not
forfeited upon the death of the Participant prior to the annuity
starting date. To the extent benefits are forfeited upon death before
the annuity starting date, such an adjustment shall be made. For
this purpose, no forfeiture shall be treated as occurring upon the
Participant's death if the Pian does not charge Participants for
providing a qualified preretirement survivor annuity, as defined in §
417(c) the Internal Revenue Code, upon the Participant's death.
A: Minimum benefit permitted: Notwithstanding
anything else in this Section to the contrary, the benefit
otherwise accrued or payable to a Participant under this Plan
shall be deemed not to exceed the Maximum Permissible
Benefit if:
1. the retirement benefits payable for a
Limitation Year under any form of benefit with respect
to such Participant under this Plan and under all other
defined benefit plans (without regard to whether a
plan has been terminated) ever maintained by the
Employer do not exceed $10,000 multiplied by a
fraction — (I) the numerator of which is the
Participant's number of Years (or part thereof, but not
less than one year) of Service (not to exceed 10) with
the Employer, and (Ii) the denominator of which is 10;
and
2. the Employer (or a predecessor
Employer) has not at any time maintained a defined
contribution plan in which the Participant participated
(for this purpose, mandatory employee contributions
under a defined benefit plan, individual medical
accounts under § 401(h), and accounts for
postretirement medical benefits established under §
419A(d)(1) are not considered a separate defined
contribution plan).
(i) Predecessor Employer: If the Employer maintains a plan that
provides a benefit which the Participant accrued while performing services for a
former Employer, the former Employer is a predecessor Employer with respect to
the Participant in the plan. A former entity that antedates the Employer is also a
predecessor Employer with respect to a Participant if, under the facts and
circumstances, the Employer constitutes a continuation of all or a portion of the
trade or business of the former entity.
(j) Severance from Employment: An employee has a severance from
employment when the employee ceases to be an employee of the Employer
maintaining the plan. An employee does not have a severance from employment
if, in connection with a change of employment, the employee's new Employer
maintains the plan with respect to the employee.
(k) Year of Participation: The Participant shall be credited with a Year
of Participation (computed to fractional parts of a year) for each accrual
computation period for which the following conditions are met: (1) the Participant
is credited with at least the number of hours of service (or period of service if the
elapsed time method is used) for benefit accrual purposes, required under the
terms of the plan in order to accrue a benefit for the accrual computation period,
and (2) the Participant is included as a Participant under the eligibility provisions
of the plan for at least one day of the accrual computation period. If these two
conditions are met the portion of a year of participation credited to the Participant
shall equal the amount of benefit accrual service credited to the Participant for
such accrual computation period. A Participant who is permanently and totally
disabled within the meaning of § 415(c)(3)(C)(i) of the internal Revenue Code for
an accrual computation period shall receive a Year of Participation with respect to
that period. In addition, for a Participant to receive a Year of Participation (or part
thereof) for an accrual computation period, the plan must be established no later
52
than the last day of such accrual computation period. In no event shall more
than one Year of Participation be credited for any 12 -month period.
(I) Year of Service: For purposes of Section 20.6., the Participant shall
be credited with a Year of Service (computed to fractional parts of a year) for
each accrual computation period for which the Participant is credited with at least
the number of hours of service (or period of service if the elapsed time method is
used) for benefit accrual purposes, required under the terms of the plan in order
to accrue a benefit for the accrual computation period, taking into account only
service with the Employer or a predecessor Employer.
20.7 Other Rules.
(a) Benefits Under Terminated Plans. If a defined benefit plan
maintained by the Employer has terminated with sufficient assets for the payment
of benefit liabilities of all plan Participants and a Participant in the plan has not
yet commenced benefits under the plan, the benefits provided pursuant to the
annuities purchased to provide the Participant's benefit under the terminated plan
at each possible annuity starting date shall be taken into account in applying the
limitations of this Article. If there are not sufficient assets for the payment of all
Participant's benefit liabilities, the benefits taken into account shall be the benefits
that are actually provided to the Participant under the terminated plan.
(b) Benefits Transferred From the Plan. If a Participant's benefits
under a defined benefit plan maintained by the Employer are transferred to
another defined benefit plan maintained by the Employer and the transfer is not a
transfer of distributable benefits pursuant to § 1.411(d)-4, Q&A -3(c), of the
Income Tax Regulations, the transferred benefits are not treated as being
provided under the transferor plan (but are taken into account as benefits
provided under the transferee plan). If a Participant's benefits under a defined
benefit plan maintained by the Employer are transferred to another defined
benefit plan that is not maintained by the Employer and the transfer is not a
transfer of distributable benefits pursuant to § 1.411(d)-4, Q&A -3(c), of the
Income Tax Regulations, the transferred benefits are treated by the Employer's
plan as if such benefits were provided under annuities purchased to provide
benefits under a plan maintained by the Employer that terminated immediately
prior to the transfer with sufficient assets to pay all Participants' benefit liabilities
under the plan. If a Participant's benefits under a defined benefit plan maintained
by the Employer are transferred to another defined benefit plan in a transfer of
distributable benefits pursuant to § 1.411(d)-4, Q&A -3(c), of the Income Tax
Regulations, the amount transferred is treated as a benefit paid from the
transferor plan.
(c) Formerly Affiliated Plans of the Employer. A formerly affiliated plan
of an Employer shall be treated as a plan maintained by the Employer, but the
formerly affiliated plan shall be treated as if it had terminated immediately prior to
the cessation of affiliation with sufficient assets to pay Participants' benefit
liabilities under the plan and had purchased annuities to provide benefits.
(d) Plans of a Predecessor Employer. If the Employer maintains a
defined benefit plan that provides benefits accrued by a Participant while
performing services for a predecessor Employer, the Participant's benefits under
a plan maintained by the predecessor Employer shall be treated as provided
under a plan maintained by the Employer. However, for this purpose, the plan of
the predecessor Employer shall be treated as if it had terminated immediately
prior to the event giving rise to the predecessor Employer relationship with,
sufficient assets to pay Participants' benefit liabilities under the plan, and had
purchased annuities to provide benefits; the Employer and the predecessor
Employer shall be treated as if they were a single Employer immediately prior to
such event and as unrelated Employers immediately after the event; and if the
event giving rise to the predecessor relationship is a benefit transfer, the
transferred benefits shall be excluded in determining the benefits provided under
the plan for the predecessor Employer.
(e) Special Rules. The limitations of this Article shall be determined
and applied taking into account the rules in . § 1.415(f) -1(d), (e) and (h) of the
Income Tax Regulations.
54
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed the day and year first above written.
VILLAGE OF MORTON GROVE
By:
Its:
BOARD OF LIBRARY DIRECTORS OF THE
VILLAGE OF MORTON GROVE
By: ASG ►'tra,
Its:,,(/
112904243.1
Legislative Summary
Resolution 16-07
AUTHORIZING THE EXECUTION OF A CONTRACT WITH LAUTERBACH & AMEN, LLP FOR
ACTUARIAL SERVICES FOR THE VILLAGE OF MORTON GROVE POLICE, FIRE, AND
MUNICIPAL RETIREMENT FUNDS
Introduced:
Synopsis:
Purpose:
Background:
Programs, Departments
or Groups Affected
Fiscal Impact:
Source of Funds:
Workload Impact:
Administrator
Recommendation:
First Reading:
Special Considerations or
Requirements:
Respectful)
January 25, 2016
This Resolution will authorize the Village President to execute a contract with Lauterbach
& Amen for actuarial services for the Village's Police, Fire, and Municipal Retirement
Funds.
State law and sound public financial accounting practices require the Village to contract
for actuarial services for its Police, Fire, and Municipal Retirement Funds . This allows
the Village to assess the assets, liabilities, and annual funding requirements of each
pension plan.
Asset values, liability projections, funding requirements for tax levy purposes, and other
information useful in properly managing and reporting the pension funds financial
performance. The actuarial services are for a period of three years starting with fiscal
year ending December 31, 2015, fiscal year ending December 31, 2016, and fiscal year
ending in December 31, 2017.
Legal, Administration, and Finance Departments
Lauterbach & Amen's fees will be $9,375 for each year and will encompass all the
aforementioned retirement funds.
General Revenue Fund - Enterprise Fund
The Finance Department as part of their normal work activities will oversee the
implementation of the contact and agreement.
Approval as presented.
Not required.
None
itted:
Prepared by:
+h . Cz=
Teresa Hoffn,. Li if orporation Counsel
iS
illage Administrator
Reveiwed by:
Hanna Sullivan, Finance Director/Treasurer
RESOLUTION 16-07
AUTHORIZING THE EXECUTION OF A CONTRACT
WITH LAUTERBACH & AMEN, LLP FOR ACTUARIAL SERVICES FOR THE VILLAGE
OF MORTON GROVE POLICE, FIRE, AND MUNICIPAL RETIREMENT FUNDS.
WHEREAS, the Village of Morton Grove (Village), located in Cook County, Illinois, is a home
rule government under the provision of Article 7 of the 1970 Constitution of the State of Illinois, can
exercise any power and perform any function pertaining to its government affairs, including but not
limited to the power to tax and incur debt; and
WHEREAS, the Village is required by State Statute to have conducted annually an actuarial
report of the Police, Fire, and Municipal Retirement Funds; and
WHEREAS, on November 11, 2015, the Village solicited proposals/bids from various actuarial
firms for services; and
WHEREAS, on December 14, 2015, staff evaluated three proposals and found the services
offered and pricing of the proposal from Lauterbach and Amen to be the most beneficial; and
WHEREAS, on January 5, 2016, Lauterbach & Amen, LLP drafted an engagement letter
summarizing the actuarial services for the year ending December 31, 2015, at cost of $9,375,
December 31, 2016, at a cost of $9,375, and December 31, 2017, at a cost of $9,375. These fees will
not exceed a combined total out-of-pocket expense for the Village of $28,125 and includes all out-of-
pocket reimbursable expenses. A copy of the contract and proposal are attached hereto; and
WHEREAS, Lauterbach & Amen, LLP has performed other services in the past which met or
exceeded the expectations of the Village; and
WHEREAS, due to the recent transition in key staff members in the Finance Department, the
Village Administrator has recommended the Village enter into a three-year contract with Lauterbach &
Amen, LLP for actuarial services; and
WHEREAS, the Village President and Board of Trustees deems it to be in the best interest of
the Village to obtain actuarial services from Lauterbach & Amen for a three year period beginning
with the fiscal year ending December 31, 2015.
NOW, THEREFORE BE IT RESOLVED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF MORTON GROVE, COOK COUNTY, ILLINOIS AS
FOLLOWS:
SECTION 1: The Corporate Authorities do hereby incorporate the foregoing whereas clauses
into this Resolution as though fully set forth therein thereby making the findings as hereinabove set
forth.
SECTION 2: The Village Administrator and/or his designee is hereby authorized to execute a
contractual agreement with Lauterbach & Amen, LLP for actuarial services pursuant to terms and
conditions consistent with their proposal dated January 5, 2016 (Exhibit "A") and the attached
Professional Services Agreement dated January 25, 2016.
SECTION 3: The Village Administrator and/or his designee are hereby authorized to take all
steps necessary to implement such contract.
SECTION 4: This resolution shall be in full force and effect upon it passage and approval.
PASSED this 25th day of January 2016.
Trustee Grear
Trustee Minx
Trustee Pietron
Trustee Ramos
Trustee Thill
Trustee Witko
APPROVED by me this 25th day of January 2016.
Daniel P. DiMaria, Village President
Village of Morton Grove
Cook County, Illinois
APPROVED and FILED in my office
this 26th day of January 2016.
Connie Travis, Village Clerk
Village of Morton Grove
Cook County, Illinois
PROFESSIONAL SERVICES AGREEMENT
BY AND BETWEEN VILLAGE OF MORTON GROVE AND
LAUTERBACH & AMEN, LLP
FOR ACTUARIAL SERVICES
THIS AGREEMENT is dated as of the 25th day of January 2016 ("Agreement") by and
between the VILLAGE OF MORTON GROVE, an Illinois municipal corporation ("Village")
and Lauterbach & Amen LLP ("Consultant").
IN CONSIDERATION OF the recitals and the mutual covenants and agreements set forth in
the Agreement, and pursuant to the Village's statutory and home rule powers, the parties agree as
follows:
1 PARTIES:
The parties to this Agreement and the address and contact information for each is as follows:
Village:
Village of Morton Grove
6101 Capulina Avenue
Morton Grove, IL 60053
Contact: Ralph E. Czerwinski,
Village Administrator ("Village Representative")
847-663-3001
rczerwinski@mortongroveil.org
Consultant:
Lauterbach & Amen LLP
27W457 Warreville Road,
Warrenville, Illinois, 60555
Contact: Todd Schroeder
630-393-1483
tschroeder@lauterbachamen.com
2 PERFORMANCE OF SERVICES:
2.1. Project Description. Consultant will provide all necessary services to perform the work
in connection with the project identified in and consistent with the Proposal dated
January 5, 2016, a copy of which is attached hereto as Exhibit "A" to this Agreement
(hereafter referred to as "services"). The Consultant represents it is financially solvent,
has the necessary financial resources, and is sufficiently experienced and competent to
perform and complete the services set forth in Exhibit "A" in a manner consistent with
the standards of professional practice recognized by the industry providing services of a
similar nature.
1
2.2 Time of Performance. The Consultant's provision of Services shall commence on
, 2016 (needs Village Board approval) (the "Commencement Date"). The
Consultant shall diligently and continuously prosecute the Services until the completion of
the work in accordance with deadlines established for particular tasks from time -to -time
("Time of Performance") The Time of Performance of this Agreement, unless terminated
pursuant to the terms of this Agreement, shall expire on December 31, 2018. A
determination of completion shall not constitute a waiver of any rights or claims the
Village may have or thereafter acquire with respect to any breach hereof by the Consultant
or any right of indemnification of the Village by the Consultant.
2.3 Early Termination. Notwithstanding any other provision hereof, the Village may terminate
this Agreement at any time upon thirty (30) days prior written notice to the Consultant. In
the event that this Agreement is so terminated, the Consultant shall be paid for services
satisfactorily performed and reimbursable expenses actually incurred, if any, prior to
termination, not exceeding the value of the services completed as determined as provided
in this Agreement.
2.4 Suspension of Services. The Village may, at any time, with or without cause, suspend all
or any portion of services for a period of up to 90 days ("suspended services"). Consultant
shall immediately stop the performance of the suspended services, until such time as
Village issues direction to Consultant to resume the suspended services. Consultant shall
take such action as is reasonably necessary to protect the suspended services and take such
additional action as directed by the Village.
2.5 Force Majeure. The Village shall not be responsible for delay in the performance of its
obligations under this Agreement caused by a force majeure event. To the extent
Contracted Services are delayed by a force majeure event, the Consultant will be entitled to
an equitable adjustment of the time for performance. For purposes of this Agreement, a
"force majeure event" is an occurrence or circumstance beyond the control of the claiming
party and may include, but is not limited to extraordinary weather conditions, or other
natural catastrophes, war, riots, strikes, lockouts, or other industrial disturbances.
2.6 Assignments; Coordination; Reporting. Assignments and tasks will be assigned to the
Consultant by a Village Representative. Consultant shall regularly report to and will
coordinate all work through the Village Representative and/or his designee.
2.7 Quality Control Plans. When required by the Exhibit "A", the Consultant shall execute a
quality control plan acceptable to the Village which ensures the quality of its work products
and activities. Prior to starting the performance of the services, Consultant shall submit its
quality control plan for the services. Submission of the quality control plan to the Village
will not replace in any way the Consultant's responsibility for quality control or for its
work products and activities. Notwithstanding any review by the Village, Consultant shall
be responsible for the quality of the Services.
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2.8 Warranty of Services. The Consultant warrants the services shall be performed in
accordance with the highest standards of professional practice, care, and diligence
practiced by recognized consulting firms in performing services of a similar nature in
existence at the Time of Performance. The warranty expressed shall be in addition to any
other warranties expressed in this Agreement, or expressed or implied by law, which are
hereby reserved unto the Village.
2.9 Mutual Cooperation. The Village agrees to cooperate with the Consultant in the
performance of the services, including meeting with the Consultant and providing the
Consultant with such non -confidential information that the Village may have that may be
relevant and helpful to the Consultant's performance of the services. The Consultant
agrees to cooperate with the Village in the performance of the services and with any other
Consultants engaged by the Village.
2.10 Amendment. No amendment or modification to this Agreement shall be effective unless
and until such amendment or modification is approved in writing by the Village
Administrator and the Consultant.
2.11 No Additional Obligation. The Parties acknowledge and agree the Village is under no
obligation under this Agreement or otherwise to negotiate or enter into any other or
additional contracts or Agreements with the Consultant, or with any vendor solicited or
recommended by the Consultant.
3 COMPENSATION AND METHOD OF PAYMENT:
3.1 Agreement Amount. The total amount billed by the Consultant for the Services under this
Agreement shall not exceed twenty-eight thousand one hundred and twenty-five dollars
($28,125.00) in total or nine thousand three hundred and seventy-five dollars ($9,375.00)
for services rendered for any fiscal year without the prior express written authorization of
the Village Administrator. Said amount includes reimbursable expenses. Services in
excess of Twenty Thousand Dollars ($20,000) per year may be authorized only if approved
by resolution of the Village's Board of Trustees.
3.2 Invoices and Payment. The Consultant shall submit invoices to the Village in an approved
format for those portions of the Services performed and completed by the Consultant. The
Village shall pay to the Consultant the amount billed for completed and approved work
within thirty (30) days after its receipt and approval of an invoice for same.
3.3 Records. The Consultant shall maintain records showing actual time devoted and costs
incurred, and shall permit the authorized representative of the Village to inspect and audit
all data and records of the Consultant for work done under the Agreement. The records
shall be made available to the Village at reasonable times during the Agreement period,
and for three years after the termination of the Agreement.
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3.4 Claim For Additional Compensation. If the Consultant wishes to make a claim for
additional compensation as a result of action taken by the Village, the Consultant shall
provide written notice to the Village of such claim within seven (7) days after occurrence
of such action, and no claim for additional compensation shall be valid unless made in
accordance with this Subsection. Any changes in the Agreement amount shall be valid
only upon written amendment of this Agreement approved by the Village Administrator.
Regardless of the decision of the Village relative to a claim submitted by the Consultant,
the Consultant shall proceed with all of the services required to complete the services
under this Agreement as determined by the Village without interruption.
3.5 Taxes, Benefits and Royalties. The Agreement amount includes all applicable federal,
state, and local taxes of every kind and nature applicable to the services as well as all taxes,
contributions, and premiums for unemployment insurance, old age or retirement benefits,
pensions, annuities, or similar benefits and all costs, royalties and fees arising from the use
on, or the incorporation into, the services, of patented or copyrighted equipment, materials,
supplies, tools, appliances, devices, processes, or inventions. All claim or right to claim
additional compensation by reason of the payment of any such tax, contribution, premium,
costs, royalties, or fees is hereby waived and released by Consultant.
4 PERSONNEL AND SUBCONTRACTORS:
4.1 Key Project Personnel. Key Project Personnel identified in Exhibit "A" shall be primarily
responsible for carrying out the Services on behalf of the Consultant. The key project
personnel shall not be changed without the Village's prior written approval.
4.2 Availability of Personnel. The Consultant shall provide all personnel necessary to
complete the Services including, without limitation, any Key Project Personnel identified
in this Agreement. The Consultant shall notify the Village as soon as practicable prior to
terminating the employment of reassigning or after receiving notice of the resignation of
any key project personnel. The Consultant shall have no claim for damages and shall not
bill the Village for additional time and materials charges as the result of any portion of the
Services which must be duplicated or redone due to such termination or for any delay or
extension of the Time of Performance as a result of any such termination, reassigning, or
resignation.
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4.3 Approval and Use of Subcontractors. The Consultant shall perform the services with its
own personnel and under the management, supervision, and control of its own organization
unless otherwise approved by the Village in writing. All subcontractors and subcontracts
used by the Consultant shall be acceptable to and approved in advance by the Village. If
any personnel or subcontractor fails to perform the services in a manner satisfactory to the
Village, the Consultant shall immediately upon notice from the Village remove and replace
such personnel or subcontractor. The Consultant shall have no claim for damages for
compensation in excess of the amount contained in this agreement or for a delay or
extension of the time of performance as a result of any such removal or replacement. The
Village's approval of any subcontractor or subcontract shall not relieve the Consultant of
full responsibility and liability for the provision, performance, and completion of the
services as required by the Agreement. All services performed under any subcontract shall
be subject to all of the provisions of this Agreement in the same manner as if performed by
employees of the Consultant. For purposes of this Agreement, the term "Consultant" shall
be deemed also to refer to all subcontractors of the Consultant, and every subcontract shall
include a provision binding the subcontractor to all provisions of this Agreement.
4.4 Village Authority. Notwithstanding any provision of this Agreement, any negotiations or
agreements with, or representations by the Consultant to any subcontractor, vendor, or
third party shall be subject to the approval of the Village. The Village shall not be liable to
any subcontractor, vendor or other third party for any Agreements made by the Consultant,
purportedly on behalf of the Village, without the knowledge and approval of the Village.
4.5 Lien Waiver. Consultant shall promptly pay for all services, labor, materials and
equipment used or employed by Consultant in the performance of the services and shall
maintain all materials, equipment, structures, buildings, premises and property of Village
free and clear of mechanic's or other liens. Consultant shall, if requested, provide Village
with reasonable evidence that all services, labor, materials and equipment have been paid
in full.
4.6 Safety and Hazardous Materials.
A. Consultant acknowledges there may be hazardous substances, wastes, or materials as
defined by applicable law ("Hazardous Materials") at the project site or otherwise
associated with the services. In such cases, Consultant shall take appropriate
precautions to protect and shall be solely and continuously responsible for the health,
safety and welfare associated with its employees, subcontractors, agents, and those
people under the supervision and control of the Consultant with the performance of
the services.
B. Consultant's employees, agents, subcontractors and all employees of Consultant's
employees, agents, subcontractors who perform the services shall be experienced and
properly trained to perform the services under such conditions and shall take adequate
precautions to protect human health and the environment in the performance of the
services.
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C. In the event that Consultant observes a potentially hazardous condition relating to the
services, Consultant shall bring such condition to the attention of Village.
5 RELATIONSHIP OF THE PARTIES:
5.1 Independent Contractor. The Consultant shall act as an independent contractor in
providing and performing the services. Nothing in, nor done pursuant to, this Agreement
shall be construed:
A. To create the relationship of principal and agent, employer and employee, partners,
or joint venturers between the Village and Consultant; or
B. To create any relationship between the Village and any subcontractor of the
Consultant.
5.2 Conflict of Interest. The Consultant represents and certifies to the best of its knowledge:
A. No employee or agent of the Village is interested in the business of the Consultant or
this Agreement;
B. Neither the Consultant nor any person employed or associated with the Consultant
has any interest that would conflict in any manner or degree with the performance of
the obligations under this Agreement; and
C. Neither the Consultant nor any person employed by or associated with the
Consultant shall at any time during the term of this Agreement obtain or acquire any
interest that would conflict in any manner or degree with the performance of the
obligations under this Agreement.
5.3 No Collusion. The Consultant represents and certifies the Consultant is not barred from
contracting with a unit of federal, state or local government as a result of:
A. A delinquency in the payment of any tax administered by the Illinois Department of
Revenue unless the Consultant is contesting, in accordance with the procedures
established by the appropriate revenue act, its liability for the tax or the amount of
the tax; or
B. A violation of either Section 33E-3 or Section 33E-4 of Article 33E of the Criminal
Code of 1961, 720 ILCS 5/33E-1 et seq.
C. The Consultant represents the only persons, firms, or corporations interested in this
Agreement as principals are those disclosed to the Village prior to the execution of
this Agreement, and this Agreement is made without collusion with any other
person, firm, or corporation. If at any time it shall be found the Consultant has, in
procuring this Agreement, colluded with any other person, firm, or corporation, then
the Consultant shall be liable to the Village for all loss or damage the Village may
suffer, and this Agreement shall, at the Village's option, be null and void.
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5.4 No Personal Liability. No elected or appointed official or employee of the Village shall be
personally liable, in law or in contract, to the Consultant as the result of the execution of
this Agreement.
6 INSURANCE AND INDEMNIFICATION:
6.1 Insurance. Contemporaneous with the Consultant's execution of this Agreement, the
Consultant shall provide certificates and policies of insurance, all with coverage and limits
acceptable to the Village, and evidencing at least the minimum insurance coverage and
limits as set forth in Exhibit "B" to this Agreement. For good cause shown, the Village
Administrator may extend the time for submission of the required policies of insurance
upon such terms, and with such assurances of complete and prompt performance, as the
Village Administrator may impose in the exercise of his sole discretion. Such certificates
and policies shall be in a form acceptable to the Village and from companies with a general
rating of A-, and a financial size category of Class X or better, in Best's Insurance Guide.
Such insurance policies shall provide no change, modification in, or cancellation of, any
insurance shall become effective until the expiration of thirty (30) days after written notice
thereof shall have been given by the insurance company to the Village. The Consultant
shall at all times during the term of this Agreement, maintain and keep the insurance
coverage provided above in force, at the Consultant's expense.
6.2 Indemnification. The Consultant shall, without regard to the availability or unavailability
of any insurance, either of the Village or the Consultant, indemnify, save harmless, and
defend the Village, and its respective officials, employees, agents, volunteers and attorneys
against any and all lawsuits, claims, demands, damages, liabilities, losses, and expenses,
including attorneys' fees and administrative expenses, that arise, or may be alleged to have
arisen, out of or in connection with, the Consultant's performance of, or failure to perform,
the services or any part thereof, whether or not due or claimed to be due in whole or in part
to the active, passive, or concurrent negligence or fault of the Consultant, except to the
extent caused by the sole negligence of the Village. The Consultant further agrees to the
extent that money is due the Consultant by virtue of this contract as shall be considered
necessary in the judgment of the Village, may be retained by the Village to protect itself
against said loss until such claims, suits, or judgments shall have been settled or discharged
and/or evidence to that effect shall have been furnished to the satisfaction of the Village.
7 USE AND DISCLOSURE OF INFORMATION:
7.1 Confidential Information. The term "confidential Information" shall mean information in
the possession or under the control of the Village relating to the technical, business or
corporate affairs of the Village; property of the Village; user information, including,
without limitation, any information pertaining to usage of the Village's computer systems,
including and without limitation, any information obtained from server logs or other
records of electronic or machine readable form; and the existence of, and terms and
conditions of, this Agreement. Village confidential information shall not include
information that can be demonstrated:
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(i) to have been rightfully in the possession of the Consultant from a source other
than the Village prior to the time the Village disclosed said information to the
Consultant under this Agreement ("time of disclosure");
(ii) to have been in the public domain prior to the time of disclosure; or
(iii) to have become part of the public domain after the Time of Disclosure by a
publication or by any other means except an unauthorized act or omission or
breach of this Agreement on the part of the Consultant.
7.2 No Disclosure of Confidential Information by the Consultant. The Consultant
acknowledges it shall, in performing the services for the Village under this Agreement,
have access to or be directly or indirectly exposed to confidential information. To the
extent allowed by law, the Consultant shall hold confidential all confidential information
and shall not disclose or use such Confidential Information without express prior written
consent of the Village. The Consultant shall use reasonable measures at least as strict as
those the Consultant uses to protect its own confidential information. Such measures shall
include, without limitation, requiring employees and subcontractors of the Consultant to
execute a non -disclosure agreement before obtaining access to confidential information.
7.3 Illinois Freedom of Information Act (FOIA). FOIA applies to public records in the
possession of a party with whom the Village has contracted. The Village will have only a
very short period of time from receipt of a FOIA request to comply with the request, and
there is a significant amount of work required to process a request including collating and
reviewing the information. Consultant will comply with all requests made by the Village
for public records (as that term is defined by Section 2(c) of FOIA) in the Consultant's
possession and will provide the requested public records to the Village within two (2)
business days of the request being made by the Village. The undersigned agrees to
indemnify and hold harmless the Village from all claims, costs, penalty, losses and injuries
(including but not limited to, attorney's fees, other professional fees, court costs and/or
arbitration or other dispute resolution costs) arising out of or relating to its failure to
provide the public records to the Village under this Agreement.
7.4 GIS Data. The Village has developed digital map information through Geographic
Information Systems Technology ("GIS data") concerning the real property located within
the Village. If necessary to the performance of the services and if requested to do so by the
Consultant, the Village may supply the Consultant with access to the GIS data. In such
case, the Consultant agrees as follows:
A. Limited Access to and use of GIS data. The GIS data provided by a Village shall be
limited to the scope of the work the Consultant is to provide for the Village, and the
Consultant shall limit its use of the GIS data to its intended purpose of furtherance of
the work;
B. Trade Secrets of the Village. The GIS data constitutes proprietary materials and
trade secrets of the Village and shall remain the property of the Village;
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C. Consent of the Village Required. The Consultant will not provide or make available
GIS data in any form to anyone without the prior written consent of the Village
Administrator;
D. Supply to Village. At the request of the Village, the Consultant shall supply the
Village with any and all information that may have been developed by the
Consultant based on the GIS data;
E. No Guarantee of Accuracy. The Village makes no guarantee as to the accuracy,
completeness, or suitability of the GIS data in regard to the Consultant's intended
use thereof; and
F. Discontinuation of Use. At such time as the Services have been completed to the
satisfaction of or terminated by the Village, the Consultant shall cease its use of the
GIS data for any purpose whatsoever; and, upon request, an authorized
representative of the Village shall be afforded sufficient access to the Consultant's
premises and data processing equipment to verify that all use of the GIS data has
been discontinued.
7.5 Ownership. Designs, drawings, plans, specifications, photos, reports, information,
observations, calculations, notes, and any other documents, data, or information, in any
form, prepared, collected, or received by the Consultant in connection with any or all of the
services to be performed under this Agreement ("documents") shall be and remain the
exclusive property of the Village. At the Village's request, or upon termination of this
Agreement, the Consultant shall cause the documents to be promptly delivered to the
Village.
7.6 News Releases. The Consultant shall not issue any news releases or other public
statements regarding the Services without prior approval from the Village Administrator.
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8 COMPLIANCE WITH LAWS AND GRANTS:
8.1 General Compliance. Consultant shall give all notices, pay all fees, and take all other
action that may be necessary to ensure the services are provided, performed, and
completed in accordance with all required governmental permits, licenses, or other
approvals and authorizations that may be required in connection with providing,
performing, and completing the services, and with all applicable statutes, ordinances, rules,
and regulations, including without limitation the Fair Labor Standards Act; any statutes
regarding qualification to do business; any statutes prohibiting discrimination because of,
or requiring affirmative action based on, race, creed, color, national origin, age, sex, or
other prohibited classification, including, without limitation, the Americans with
Disabilities Act of 1990, 42 U.S.C. §§ 12101 et seq., and the Illinois Human Rights Act,
775 ILCS 5/1-101 et seq. Consultant shall be solely liable for any fines or civil penalties
that are imposed by any governmental or quasi -governmental agency or body that may
arise, or be alleged to have arisen, out of or in connection with the Consultant's, or its
subcontractors' performance of, or failure to perform, the services or any part thereof
Every provision required by law to be inserted into this Agreement shall be deemed to be
inserted herein.
8.2 Grant Compliance. Consultant shall also comply with all conditions of any federal, state,
or local grant received by the Villageor consultant with respect to this Agreement or the
services.
8.3 Sexual Harassment Policy. The Consultant represents and warrants that it has and follows
a written sexual harassment policy in full compliance with Section 2-105(A)(4) of the
Illinois Human Rights Act, 775 ILCS 5/2-105(A)(4).
8.4 Patriot Act Compliance. The Consultant represents and warrants neither it nor any of its
principals, shareholders, members, partners, or affiliates, as applicable, is a person or entity
named as a Specially Designated National and Blocked Person (as defined in Presidential
Executive Order 13224) and that it is not acting, directly or indirectly, for or on behalf of a
Specially Designated National and Blocked Person. The Consultant further represents and
warrants the Consultant and its principals, shareholders, members, partners, or affiliates, as
applicable, are not, directly or indirectly, engaged in, and are not facilitating the
transactions contemplated by this Agreement on behalf of any person or entity named as a
Specially Designated National and Blocked Person. The Consultant hereby agrees to
defend, indemnify and hold harmless the Village, its respective corporate authorities, and
elected or appointed officials, officers, employees, agents, representatives, engineers,
volunteers, and attorneys, from and against any and all claims, damages, losses, risks,
liabilities, and expenses (including reasonable attorneys' fees and costs) arising from or
related to any breach of the representations and warranties in this subsection.
8.5 Equal Employment Opportunity Compliance, During the performance of this Agreement,
Consultant as follows:
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A. It will not discriminate against any employee or applicant for employment on the
basis of race, age, marital status, color, religion, sex, sexual orientation, physical or
mental handicap unrelated to ability, national origin or ancestry or an unfavorable
discharge from military service; and further that it will examine all job classifications
to determine if minorities or women are underutilized and shall take appropriate
affirmative action to rectify any such underutilization.
B. If it hires additional employees in order to perform the services or any portion
hereof, it shall determine the availability (in accordance with the Village's rules) of
minorities and women in the area(s) from which they may reasonably recruit, and it
will hire for each applicable job classification for which employees are hired in such
manner that minorities and women are not underutilized.
C. In all solicitations or advertisements for employees placed by it or on its behalf, it
will state all applicants will be afforded equal opportunity without discrimination
based on race, color, religion, sex, sexual orientation, national origin or ancestry,
marital status, age physical or mental handicap unrelated to ability or an unfavorable
discharge from the military.
D. It shall submit reports as required by the VilIage's rules and furnish all relevant
information as may from time -to -time be requested by the Village, and in all respects
comply with the Illinois Human Rights Act and the Village's Rules.
E. It shall permit access to all relevant books, records, accounts and work sites by
personnel of the Village and the Village for purposes of investigation to ascertain
compliance with the Illinois Human Rights Act and the Village's rules.
F. It shall include verbatim or by reference the provisions of this clause in every
subcontract it awards under which any portion of the contract obligations are
undertaken or assumed so such provisions will be binding upon such subcontractor.
In the same manner as with other provisions of this Agreement, the Consultant will
be liable for compliance with applicable provisions of this clause by such
subcontractors; and further it will promptly notify the Village or the Village in the
event any subcontractor fails or refuses to comply therewith. In addition, no
Consultant shall utilize any subcontractor declared by the Illinois Human Rights
Commission to be ineligible for contracts or subcontracts with the State of Illinois or
any of its political subdivisions or municipal corporations.
G. If the Consultant has not complied with all provisions of the Illinois Human Rights
Act, or the Rules and Regulations of the Illinois Department of Human Rights
"Village", the Consultant may be declared ineligible for future contracts or
subcontracts with the Village and this Agreement may be cancelled or voided in
whole or in part, and such other sanctions or penalties may be imposed or remedies
invoked as provided by statute or regulation.
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9 DEFAULT AND DISPUTE RESOLUTION:
9.1 Default. If it should appear at any time the Consultant has failed, refused or delayed to
perform, the services any other requirement of this Agreement with diligence at a rate that
assures completion of the services and full compliance of this Agreement, ("event of
default"), and fails to cure any such event of default within ten (10) business days after the
Consultant's receipt of written notice of such event of default from the Village, then the
Village shall have the right, without prejudice to any other remedies provided by law or
equity, to pursue any one or more of the following remedies:
A. Cure by Consultant. The Village may require the Consultant, within a reasonable
time, to complete or correct all or any part of the services that are the subject of the
event of default; and to take any or all other action necessary to bring the Consultant
and the services into compliance with this Agreement.
B. Termination of Agreement by Village. The Village may terminate this Agreement
without liability for further payment of amounts due or to become due under this
Agreement.
C. Withholding of Payment by Village. The Village may withhold from any payment,
whether or not previously approved, or may recover from the Consultant, any and all
costs, including attorneys' fees and administrative expenses, incurred by the Village
as the result of any event of default by the Consultant or as a result of actions taken
by the Village in response to any event of default by the Consultant.
9.2 Dispute Resolution. Any dispute related to this Agreement shall, upon request by either
party, be submitted to a panel consisting of at least one representative of each party who
shall have the authority to enter into an Agreement to resolve the dispute. In the event the
panel is unable to reach a mutual resolution of the dispute, or has failed to convene within
two weeks of the request of either party, either party may refer the matter to a court of
appropriate jurisdiction. All communications between the parties or their representatives
in connection with the attempted resolution of any dispute shall be confidential and
deemed to have been delivered in furtherance of dispute settlement and shall be exempt
from discovery and production, and shall not be admissible in evidence whether as an
admission or otherwise, in any arbitration, judicial or other proceeding for the resolution of
the dispute.
9.3 During the dispute resolution period, or if litigation ensues, pending any final judicial
decision or settlement, Consultant shall proceed diligently with the services.
10 GENERAL PROVISIONS:
10.1 Notice.
A. Any notice or communication required or permitted to be given under this
Agreement shall be in writing and shall be delivered
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(i) personally to an authorized representative of the party;
(ii) by certified mail addressed to the contact person listed in Section 1 of this
Agreement, return receipt requested, and deposited in the U.S. Mail, postage
prepaid;
(iii) by facsimile to a number provided by the contact person listed in Section 1 of
this agreement, and deposited in the U.S. Mail, postage prepaid the recipient; or
(iv) by electronic interne mail ("e-mail") addressed to the contact person listed in
Section 1 of this Agreement, and deposited in the U.S. Mail, postage prepaid.
B. Unless otherwise expressly provided in this Agreement, notices shall be deemed
received upon the earlier of actual receipt or three business days following deposit in
the U.S. mail.
C. By notice complying with the requirements of this Subsection, each Party shall have
the right to change the address or the addressee, or both, for all future notices and
communications to such party, but no notice of a change of addressee or address
shall be effective until actually received. Notices and communications to the Village
shall be addressed to the party listed in Section 1 of this Agreement.
10.2 Assignment. This Agreement may not be assigned by the Village or by the Consultant
without the prior written consent of the other party.
10.3 Third Party Beneficiary. No claim as a third party beneficiary under this Agreement by
any person, firm, or corporation other than the Consultant shall be made or be valid
against the Village.
10.4 Provisions Severable. If any term, covenant, condition, or provision of this Agreement is
held by a court of competent jurisdiction to be invalid, void, or unenforceable, the
remainder of the provisions shall remain in full force and effect and shall in no way be
affected, impaired or invalidated.
10.5 Time. Time is of the essence in the performance of this Agreement.
10.6 Governing Laws. This Agreement shall be interpreted according to the laws of the State
of Illinois.
10.7 Binding Effect. The terms of this Agreement shall bind and inure to the benefit of the
Parties hereto and their agents, successors, and assigns.
10.8 Entire Agreement. This Agreement constitutes the entire Agreement between the parties
and supersedes any and all previous or contemporaneous oral or written Agreements and
negotiations between either of the Village and the Consultant with respect to the Proposal
and the Services.
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10.9 Waiver. No waiver of any provision of this Agreement shall be deemed to or constitute a
waiver of any other provision of this Agreement (whether or not similar) nor shall any
such waiver be deemed to or constitute a continuing waiver unless otherwise expressly
provided in this Agreement.
10.10 Remedies. No remedies or rights conferred upon the Village by this Agreement are
intended to be exclusive of any remedy or right provided by law or equity, but each shall
be cumulative and shall be in addition to every other remedy or right given herein or now
or hereafter existing at law or in equity.
10.11 Survival of Terms. Articles on Indemnity, Confidential Information and Rights in Data
shall survive termination of this Agreement.
10.12 Severability. The invalidity or unenforceability of any particular provision of this
Agreement shall not affect the other provisions, and this Agreement shall be construed in
all respects as if any invalid or unenforceable provision were omitted.
10.13 Exhibit. Exhibits "A" (Consultant's proposal dated January 8, 2016) and "B" (insurance
requirements) are attached hereto, and by this reference incorporated in and made a part
of this Agreement. In the event of a conflict between the Exhibits and the text of this
Agreement, the text of this Agreement shall control.
10.14 Rights Cumulative. Unless expressly provided to the contrary in this Agreement, each
and every one of the rights, remedies, and benefits provided by this Agreement shall be
cumulative and shall not be exclusive of any other such rights, remedies, and benefits
allowed by law.
10.15 Counterpart Execution. This Agreement may be executed in several counterparts, each of
which, when executed, shall be deemed to be an original, but all of which together shall
constitute one and the same instrument.
SIGNED:
By: Ralph E. Czerwinski, Village Administrator
Village of Morton Grove
By: Todd Schroeder
Lauterbach & Amen, LLP
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EXHIBIT "A"
Lauterbach & Amen, LLP
January 5, 2016
CERTIFIED PUBLIC ACCOUNTANTS
Members of the Board of Trustees
Village of Morton Grove
Morton Grove, Illinois
27W457 WARRENVILLE RD. • WARRENVILLE, ILLINOIS 60565
PHONE 630.393.1483 • FAX 830.393.2516
www.lauterbactiarnen.com
We are pleased to confirm our understanding of the services we are to provide for the Village of Morton
Grove, Illinois for the fiscal years ending December 31, 2015, 2016 and 2017. It is our understanding
that Lauterbach & Amen, LLP will prepare the Police, Fire and Municipal Employee Retirement Fund
Actuarial Reports for the Village.
You agree to assume all management responsibilities for the actuarial services we provide; you will
oversee the services by designating an individual, preferably from senior management, with suitable
skill, knowledge, or experience; you will evaluate the adequacy and results of the services; and you will
accept responsibility for them.
Lauterbach and Amen, LLP does not assume any management responsibilities for the Village. These
services cannot be relied upon to detect errors, irregularities, or illegal acts that may exist. However, we
will inform you of any such matters that may come to our attention.
Fees for our services are as follows:
Actuarial Financia] Statement Reporting
• Preparation of Fire Pension Tax Levy Actuarial Valuation
O Preparation of Fire Pension GASB 67/68 Actuarial Valuation
® Preparation of Police Pension Tax Levy Actuarial Valuation
• Preparation of Police Pension GASB 67/68 Actuarial Valuation
O Preparation of Municipal Employee Retirement Fund Actuarial Valuation
• Preparation of Municipal Employee Retirement Fund GASB 67/68 Actuarial Valuation
® Attendance at Meeting to Present Results
Total Annual Actuary's Reports
Fiscal Year End
December 31, 2015
52,000
51,750
$2,000
$1,750
$1,000
5875
Included
$9,375
Fiscal Year End
December 31, 2016
$2,000
51,750
$2,000
$1,750
$1,000
$875
Included
$9,375
Fiscal Year End
December 31, 2017
$2,000
51,750
$2,000
$1,750
51,000
$875
Included
59,375
Village of Morton Grove, Illinois
Page 1
We appreciate the opportunity to be of service to the Village of Morton Grove, Illinois and believe this
letter accurately summarizes the significant terms of our engagement. If you have any questions, please
let us know. If you agree with the terms of our engagement as described in this letter, please sign below
and return it to us.
Cordially,
1-\ CIS, L—LP
LAUTERBACH & AMEN, LLP
RESPONSE:
This letter correctly sets forth the understanding of the Village of Morton Grove, Illinois:
Accepted by:
Title:
Village of Morton Grove, Illinois
Page 2
EXHIBIT "B"
INSURANCE COVERAGES
A. Worker's Compensation and Employer's Liability with limits not less than:
(1) Worker's Compensation: Statutory;
(2) Employer's Liability:
$500,000 injury -per occurrence
$500,000 disease -per employee
$500,000 disease -policy limit
Such insurance shall evidence that coverage applies in the State of Illinois.
B. Comprehensive Motor Vehicle Liability with a combined single limit of liability for bodily
injury and property damage of not less than $1,000,000 for vehicles owned, non -owned, or
rented. All CONSULTANT employees shall be included as insureds.
C. Comprehensive General Liability with coverage written on an "occurrence" basis and with
limits no less than:
$2,000,000 Bodily Injury and Property Damage Combined Single Limit Coverage is to
be written on an "occurrence" bases.
Coverages shall include:
- Broad Form Property Damage Endorsement
- Blanket Contractual Liability (must expressly cover the indemnity provisions of the
Contract)
D. Professional Liability Insurance. With a limit of liability of not less than $1,000,000 per
occurrence and $2,000,000 in the aggregate and covering CONSULTANT against all sums that
CONSULTANT may be obligated to pay on account of any liability arising out of the Contract.
E. Umbrella Policy. The required coverages may be in any combination of primary, excess, and
umbrella policies. Any excess or umbrella policy must provide excess coverage over underlying
insurance on a following -form basis such that when any loss covered by the primary policy
exceeds the limits under the primary policy, the excess or umbrella policy becomes effective to
cover such loss.
F. VILLAGE as Additional Insured. The VILLAGE shall be named as an Additional Insured on
all policies except for: Worker's Compensation and Professional Liability. Each such additional
Insured endorsement shall identify the Village as follows: Village of Morton Grove, including its
Board members and elected and appointed officials, its officers, employees, agents, attorneys,
CONSULTANTs, and representatives
16
Legislative Summary
Resolution 16-08
AUTHORIZING A CONTRACTUAL AGREEMENT WITH CDW-G
TO PROVIDE FOR THE RENEWAL OF A MICROSOFT ENTERPRISE AGREEMENT
FOR MICROSOFT SOFTWARE LICENSING FOR
OPERATING AND PRODUCTIVITY SOFTWARE FOR ALL VILLAGE DESKTOP COMPUTERS
Introduction:
Synopsis:
Purpose:
Background:
Programs, Departments
or Groups Affected
Fiscal Impact:
Source of Funds:
Workload Impact:
Administrator
Recommendation:
First Reading:
Special Considerations or
Requirements:
Respec submitted: d
January 25, 2016
To authorize an enterprise -wide software agreement with Microsoft Corporation through CDW-
G, the current State of Illinois contract reseller for operating and productivity software.
To maintain sufficient licensing of operating and productivity software according to the
software's terms and conditions. The Microsoft Enterprise Agreement will allow the Village to
maintain licensing compliance as well as maintain software updates, upgrades, and technical
support.
The Village of Morton Grove is required to maintain licensing for the software it uses in daily
operations. The operating system, individual applications, and connectivity to servers all
maintain their own licensing scheme. The Enterprise Agreement renewal includes an annual
maintenance support cost for updates and upgrades (Microsoft Software Assurance), as well as
the license costs. The licenses and software maintenance structure was originally established in
2008. This type of agreement licenses the enterprise as an entire fleet as opposed to individual
purchases. The Enterprise Agreement has advantages over individual purchases including lower
platform costs, distributed payments, anniversary period renewals, and software upgrade
assurances. This payment covers the license and maintenance period of January 1, 2016, through
December 31, 2016.
All Departments.
The 2016 licensing and software maintenance expense is $39,691.60.
Funds from the Information Technology division fiscal year 2016 is allocated for this
Agreement.
The Information Technology division as part of their normal work activities will oversee and
coordinate the management of this contract.
Approval as presented
None required.
None.
Reviewed by:
Teres.. Ho
�.� Prepared by:
ze1winski, Village Administrator Boyle Wong, Information Systems Manager
an Liston, Corporation Counsel
RESOLUTION 16-08
AUTHORIZING A CONTRACTUAL AGREEMENT WITH CDW-G
TO PROVIDE FOR THE RENEWAL OF A MICROSOFT ENTERPRISE AGREEMENT
FOR MICROSOFT SOFTWARE LICENSING FOR OPERATING AND PRODUCTIVITY
SOFTWARE FOR ALL VILLAGE DESKTOP COMPUTERS
WHEREAS, the Village of Morton Grove (Village), located in Cook County, Illinois, is a home
rule unit of government under the provisions of Article 7 of the 1970 Constitution of the State of Illinois,
can exercise any power and perform any function pertaining to government affairs, including but not
limited to the power to tax and incur debt; and
WHEREAS, the Village of Morton Grove utilizes and relies on Microsoft Corporation software to
operate Village business; and
WHEREAS, the Village's use of Microsoft Corporation software is based on its compliance with
the software's terms and conditions; and
WHEREAS, the Village is required to maintain a valid license for all software in use; and
WHEREAS, the Information Technology Division determined the Village needs to maintain and
update its Microsoft operating and productivity software; and
WHEREAS, the Village established an Enterprise Agreement licensing structure with Microsoft in
2008 through Resolution 08-62 in order to comply with the Village's use of Microsoft Corporation
software and maintain and expand the existing Enterprise Agreement for the period of January 1, 2016,
through December 31, 2016; and
WHEREAS, the State of Illinois has negotiated with Microsoft volume pricing levels which
provide a deep discount for licensing software for the State and all units of local government; and
WHEREAS, in order to take advance of these pricings, the Village must purchase from a large
account reseller of Microsoft Software products since Microsoft does not sell directly to governmental
units; and
WHEREAS, CDW-G of Vernon Hills, Illinois, is an approved large account reseller of Microsoft
Software products and will honor the current pre -negotiated State of Illinois reseller pricing and contract
#CMS6945110 for Microsoft Enterprise Agreement licensing; and
WHEREAS, the Information Technology Division recommends renewing the Microsoft
Enterprise Agreement through CDW-G of Vernon Hills, Illinois in order to maintain sufficient Microsoft
Corporation software licenses through CDW-G to support the VilIage's business.
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES
OF THE VILLAGE OF MORTON GROVE, COOK COUNTY, ILLINOIS AS FOLLOWS:
SECTION 1: The Corporate Authorities do hereby incorporate the foregoing WHEREAS clauses
into this Resolution as though fully set forth therein thereby making the findings as hereinabove set forth.
SECTION 2: The Village President of the Village of Morton Grove is hereby authorized to
execute, and the Village Clerk to attest, a contract with CDW-G, 230 N. Milwaukee Avenue, Vernon
Hills, Illinois, for the amount of $39,691.60 based upon operating and productivity software for one
hundred twenty (120) Village desktop computers and two hundred (200) cloud services licenses.
SECTION 3: The Village Administrator and/or his designees are authorized to take all steps
necessary to finalize negotiations for said contract and implement its terms and conditions.
SECTION 4: This Resolution shall be in full force and effect upon its passage and approval.
PASSED THIS 25th day of January 2016.
Trustee Grear
Trustee Pietron
Trustee Minx
Trustee Thill
Trustee Ramos
Trustee Witko
APPROVED BY ME THIS 25th day of January 2016
Daniel P. DiMaria, Village President
Village of Morton Grove
Cook County, Illinois
ATTESTED AND FILED in my office
this January 26, 2016
Connie Travis, Village Clerk
Village of Morton Grove
Cook County, Illinois
00,
BILL TO:
VILLAGE OF MORTON GROVE
6101 CAPULINA AVE
CDWG.com 1 800.594.4239
SHIP TO:
VILLAGE OF MORTON GROVE
Attention To: BOYLE WONG
6101 CAPULINA AVE
Accounts Payable
MORTON GROVE , IL 60053-2985 MORTON GROVE , IL 60053-2985
Contact: BOYLE WONG 847.663.6114
Customer Phone 4847.965.4100 Customer P.O. 4 EA PAYMENT QUOTE
ACCOUNT MANAGER
•121:2=1=11
• HIPP1NG!4ETFIDD
ELECTRONIC
DISTRIBUTION
.QTY . ITEM NO. .DESCRIPTION
120
120
120
120
80
328508
359148
208465
208464.
357154•
OE400SPS
SALES QUOTATION
f ��r•! � r hX 1 ���st7�� 1
} GSJD696264730 1/11/2016
TERMS
Net 30 Days -Govt
State/Local
MS EA WIN ENT SA W/MDOP UPG
Mfg#: CX2-00093-SLG
Contract: Illinois Microsoft
CMS6945110
Electronic distribution - NO MEDIA
MS EA OFFICE 365 PLAN E3 ADD DCAL
Mfg#: AAA -10722 -12 -SLG
Contract: Illinois Microsoft
CMS6945110
Electronic distribution - NO MEDIA
MS EA CORE CAL SA PLAT DCAL SLG
Mfg#: W06 -01069 -SLG
Contract: Illinois Microsoft
CMS6945110
Electronic distribution - NO MEDIA
MS EA OFFICE PRO PLUS SA PLAT SLG
Mfg#: 269 -12442 -SLG
Contract: Illinois Microsoft
CMS6945110
Electronic distribution - NO MEDIA
MS EA OFFICE 365 PLAN E3 SUB P/USER
Mfg#: AAA -10842 -12 -SLG
Contract: Illinois Microsoft
CMS6945110
Electronic distribution - NO MEDIA
SUBTOTAL
FREIGHT
TAX
CDW Government
230 North Milwaukee Ave.
Vernon Hills, IL 60061
Fax: 312.752.3630
This quote is subject to CDW's Terms and Conditions of Sales and Service Projects at
http://www.cdwg.com/content/terms-conditions/product-sales.aspx
For more information, contact a CDW account manager.
EXEMPTION CERTIFICATE
E9998-1491-05
:EXTENDED PRICE
t1N?T PRICE
34.70
4,164.00
71.41 8,569.20
28.27 3,392.40
77.63 9,315.60
178.13 14,250.40
39,691.60
0.00
0.00
Please remit payment to:
CDW Government
75 Remittance Drive
Suite 1515
Chicago, IL 60675-1515
(c) to or for the benefit of any one or more of the deceased
Participant's relatives by blood, adoption or marriage.
11.4 Participant Information. Each Participant must file with his Employer, in
writing, his post office address, the post office address of each of his beneficiaries, and
each change of post office address. Any communication, statement or notice addressed
to a Participant or beneficiary with postage prepaid at his last post office address filed
with the Employer, or if no address is filed with the Employer, then at his last post office
address as shown on the Employer's records, will be binding on the Participant and his
beneficiary for all purposes of the Plan. The Employer shall not be required to search for
or locate a Participant or beneficiary. If the Plan Administrator notifies a Participant or
beneficiary that he is entitled to a distribution and also notifies him of the provisions of
this Section, and the Participant or beneficiary fails to claim his benefits under the Plan
and make his whereabouts known to the Employer within two (2) years after the
notification, the benefits of the Participant and beneficiary will be disposed of as follows:
(a) If the whereabouts of the Participant is unknown, but the
whereabouts of a Participant's beneficiary then is known to the Employer,
distribution will be made to the beneficiary.
(b) if the whereabouts of the Participant and his beneficiary then is
unknown to the Employer, but the whereabouts of one or more relatives by blood,
adoption or marriage of the Participant is known to the Employer, the Plan
Administrator may cause distribution of the Participant's benefits to be made to
any one or more of such relatives and in such proportions as the Trustees
determine.
11.5 Distribution for Minor or Disabled Beneficiary . When a Participant or the
beneficiary of a Participant is under legal disability, or in the Plan Administrator's opinion
is in any way incapacitated so as to be unable to manage his financial affairs, the Plan
Administrator may direct payments or distributions to his legal representative, or to a
relative or friend of such person for his benefit, or the Plan Administrator may direct
payments or distributions for the benefit of the Participant or beneficiary in any way the
Plan Administrator determines to be in such person's best interests.
11.6 Indemnification of Plan Administrator. The Administrator shall determine
the identity of the distributees, and in so doing, may act upon such information as, on
reasonable inquiry they may deem reliable with respect to heirship, relationship,
survivorship, or any other fact relative to the distributee; and the Administrator shall be
indemnified and saved harmless with respect to all payments required to be made
hereunder (including but not limited to any payments made to a beneficiary or relative of
a missing Participant pursuant to Section 11.4), if made in good faith and without actual
notice or knowledge of the changed condition or status of any person receiving
payments. The Administrator may rely on any list or notice furnished by an Employer as
to the facts, the occurrence of any events, or the existence of any situation, and shall
not be bound to inquire as to the basis of any such decision, list, or notice, and shall be